Glaxo To Plead Guilty, Will Pay $3 Billion Stemming From Drug Marketing

BOSTON - (Mealey's) GlaxoSmithKline LLC (GSK) agreed June 2 to plead guilty and to pay $3 billion to resolve broad-ranging criminal and civil allegations in Massachusetts federal court regarding the promotion of several prescription drugs, failure to report safety data and alleged false-price reporting...

Cadwalader Client & Friends Memo: A 'Hat Trick' of Heightened False Claims Act Risks for Health Care Providers

Introduction At the risk of stating the obvious, fighting and prosecuting health care fraud are top priorities for the Federal Government, and the False Claims Act ("FCA") is its weapon of choice in the battle. In a speech in June, Stuart Delery, the Acting Assistant Attorney General for...

And The Beat Goes On. . . Medicaid Fraud Suits Continue Churning and Returning Taxpayer Money Paid To Medical Providers

In anticipation of the upcoming U.S. presidential election, the news cycle is heating up with discussions about federal and state budget deficits and funding for Medicare/Medicaid programs. Both the Republican and Democratic Parties are lining up and getting ready to pitch their proposals to the public...

U.S. Government Hits Bank Of America With $1 Billion Lawsuit Over Lending Program

NEW YORK - (Mealey's) The U.S. government on Oct. 24 filed a $1 billion lawsuit against Bank of America Corp., as successor for Countrywide Financial Corp., alleging that Countrywide violated provisions of the False Claims Act by engaging in a scheme to defraud Fannie Mae and Freddie Mac in connection...

Boehringer Ingelheim Pays $95 Million To Settle Off-Label, Kickback Claims In Civil Suit

BALTIMORE — Boehringer Ingelheim Pharmaceuticals Inc. will pay $95 million to the federal government to resolve civil allegations that it marketed three drugs for off-label uses, promoted high doses of two drugs and paid kickbacks to health care professionals, according to a settlement agreement...

William A. Ruskin: First Amendment Bars Pharmaceutical Company Prosecution

By William A. Ruskin The Second Circuit [on Dec. 3] rendered its much-anticipated decision in United States v. Caronia [ enhanced version available to lexis.com subscribers ], the most important Food Drug and Cosmetics Act enforcement case pending in the country. Not only did the court's 2-1 holding...

Jenner & Block: Environmental Group Ordered To Pay Disney’s Attorneys’ Fees For Filing Baseless Reverse False Claims Act Lawsuit

In the latest saga of what has become a long running dispute between plaintiff RBC Four Co. LLC ("RBC") and the Walt Disney Company ("Disney"), a federal district court judge dismissed RBC's reverse False Claims Act allegations and ordered RBC to reimburse Disney for its attorneys'...

Department of Justice Files Amicus Curiae Brief In First Circuit Seeking Reversal of Decision That Could Significantly Impair False Claims Act Enforcement

On August 1, 2013, the Department of Justice (the “DOJ”) submitted an amicus curiae brief asking the First Circuit to reverse a significant False Claims Act (“FCA”) decision issued in United States ex rel. Helen Ge, M.D. v. Takeda Pharmaceutical Company Limited, et al. (“Takeda...

‘Maybe Just Whistle’: #7 in Financial Fraud Law for the Year

“You know you don’t have to act with me, Steve. You don’t have to say anything, and you don’t have to do anything. Not a thing. Oh, maybe just whistle. You know how to whistle, don’t you, Steve? You just put your lips together and ... blow.” That’s what Lauren...

Final Four in Financial Fraud Law’s Top 10 of the Year Is Coming Next Week!

The Financial Fraud Law Blog Top 10 countdown is nearing conclusion. You already have seen our picks for #10 down through #5, which we summarize below. Stay tuned for the final four picks, coming right after the New Year! We wish all of the readers of the Financial Fraud Law Blog , the subscribers...

New York City Settles Whistleblower Suit Over Medicaid Claims for Psychological Services for Special Education Students

The federal government and the City of New York have settled the case of Ohlmeyer ex rel. United States of America v. City of New York , a whistleblower action brought pursuant to the qui tam provisions of the federal False Claims Act. In its civil complaint, the federal government alleged that the...

Company Admits Defrauding Defense Department of Millions

San Diego-based Vector Planning & Services, Inc., has entered into a deferred prosecution agreement with federal prosecutors in which it admitted to criminally defrauding the Defense Department, and in which it agreed to pay restitution. As part of the agreement, Vector admitted that its former...

US Government Sues Kellogg, Brown & Root Services, Alleging Kickbacks and False Claims Relating to Iraq Support Services Contract

The U.S. government has filed a complaint against Kellogg, Brown & Root Services Inc. (KBR) and Kuwaiti companies La Nouvelle General Trading & Contracting Co. and First Kuwaiti Trading Co. for allegedly submitting false claims in connection with KBR’s contract with the Army to provide...

Prosecutors’ Rush to Join Private Law Firms Accelerates

The wave of financial fraud prosecutors joining private law firms is continuing – in fact, it appears to be accelerating. Consider that, in just the past couple of days, David Meister, who ran the enforcement unit at the Commodity Futures Trading Commission, joined Skadden, Arps, Slate...

If You Thought that JPMorgan Chase Was Finished Settling, Think Again. Now, It Pays $614 Million to Resolve More Mortgage Loan Charges

JPMorgan Chase has reached yet another settlement with federal prosecutors. Now, it will pay $614 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans submitted for insurance coverage and guarantees by the Department...

Lidoderm Settlement Costs Endo Pharmaceuticals $192.7 Million

Pharmaceutical company Endo Health Solutions Inc. and its subsidiary Endo Pharmaceuticals Inc. have agreed to pay $192.7 million to resolve criminal and civil liability arising from Endo’s marketing of the prescription drug Lidoderm for uses not approved as safe and effective by the Food and Drug...

$300 Million Tax Fraud Suit Against Sprint-Nextel May Proceed, Appeals Court Rules

A first-of-its-kind lawsuit against Sprint-Nextel Corporation, alleging that it deliberately undercollected and underpaid millions of dollars in New York State and local sales taxes on flat-rate access charges for wireless calling plans, may continue to trial, a New York appellate court has ruled. ...

Omnicare Reaches $4.19 Million Settlement of Whistleblower Suit Alleging Kickbacks

Omnicare Inc., an Ohio-based long term care pharmacy, has agreed to pay the U.S. government $4.19 million to settle allegations that it engaged in a kickback scheme in violation of the federal False Claims Act. Omnicare provides pharmaceuticals and services to long term care facilities and residents...

Whistleblower to Receive $63.9 Million in JPMorgan Mortgage Loan Case

As readers of the Financial Fraud Law Report and the Financial Fraud Law Blog certainly recall, JPMorgan Chase settled a couple of big, big Madoff-related cases some weeks ago, reaching a $2.05 billion settlement with federal prosecutors over its failure to properly exercise oversight of Bernard Madoff...

Whistleblower Nets $1.1 Million in False Claims Act Case against Bristol-Myers Squibb

New York has reached a $6.2 million settlement of a whistleblower case alleging that a medical imaging company that made millions of dollars’ worth of sales in New York knowingly evaded New York State and New York City taxes. The whistleblower in the action will receive $1,137,814.80 from the...

Foley & Lardner LLP: Hospitals Urging SCOTUS to Limit False Claims Act Penalties

What do a moving company and a hospital association have in common? The False Claims Act (FCA). The American Hospital Association along with the United States Chamber of Commerce and the Pharmaceutical Research and Manufacturers of America recently submitted an amici curiae brief in support of petitioners...

Foley & Lardner LLP: 7th Circuit Rejects Public-Disclosure Bar in Qui Tam Case

By Eric G. Pearson A cardinal rule of a qui tam action brought under the False Claims Act is that the relator must be the information’s original source. In United States ex rel. Heath v. Wisconsin Bell, Inc. , No. 12-3383 (7th Cir. July 28, 2014) , the Seventh Circuit grappled with this bar...

Foley & Lardner LLP: 8th Circuit Dismisses Whistleblower's Suit Finding Facts Were Already Publicly Disclosed

By Jacqueline N. Acosta In an August 7, 2014 opinion, the Eighth Circuit upheld the dismissal of a whistleblower’s suit alleging that a number of pain pump device makers had violated the False Claims Act (FCA) by marketing their pain pumps for harmful off-label uses. United States ex rel. Paulos...

DLA Piper: Government Turns Up the Heat With the False Claims Act – 5 Action Steps for Healthcare Providers

By Savaria B. Harris and Mitka T. Baker Forbes magazine has dubbed 2014 “The Year of the Whistleblower.” For healthcare providers, this designation has translated into millions of dollars in fines and penalties and the initiation of criminal investigations. Just last month, the Health...

Stryker Subsidiary, Ex-CEO Plead Guilty, Pay $79 Million For Illegal Device Marketing

NEWARK, N.J. — (Mealey’s) Stryker Corp. subsidiary OtisMed Corp. and the former OtisMed chief executive officer on Dec. 8 pleaded guilty to marketing the unapproved OtisKnee Orthopedic Cutting Guide medical device after the Food and Drug Administration denied clearance for the device ( United...