LexisNexis® Legal Newsroom
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...

Pennsylvania Pharmaceutical Company Agrees to Pay $56.5 Million to Settle Allegations It Engaged in Deceptive Marketing Practices

Pennsylvania-based pharmaceutical company, Shire Pharmaceuticals LLC, recently agreed to pay $56.5 million to resolve civil allegations that it violated the False Claims Act (FCA). Shire allegedly made false and misleading statements when marketing several drugs, including Adderall XR, the well-known...

Boston Scientific Pays $600 Million To Settle Guidant Contract Suit By Johnson & Johnson

MARLBOROUGH, Mass. — (Mealey’s) Boston Scientific Corp. on Feb. 17 announced that it has agreed to pay Johnson & Johnson (J&J) $600 million to settle a nine-year-old lawsuit alleging that Guidant Corp., which is now a Boston Scientific subsidiary, in 2006 interfered with J&J’s...

Management Liability Insurance: If a Qui Tam Action is a Claim, When is it “First Made”?

The federal False Claims Act imposes liability on those who defraud the government. The law also allows third-parties to bring so-called qui tam actions in the form liability claims under the Act; if the qui tam actions are successful, the third-party can receive a portion of the recovery. When a third...

D&O Insurance: Regulatory Exclusion Precludes Coverage for Relator’s Qui Tam Action

As I have noted in prior posts, “ qui tam actions” under the False Claims Act often fit uncomfortably with typical D&O insurance policy terms and provisions. For example, the procedure whereby qui tam actions are filed but not immediately served raise questions of the claims made date...

Contract to Share Qui Tam Awards is Enforceable

In Fair Lab. Practices Assocs., et al., v. Riedel, et al. , the United States District Court for the District of New Jersey ruled that a contract providing that two parties share potential qui tam awards is enforceable [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance...

DLA Piper: 9th Circuit Joins Majority Of Circuits To Lower Barrier For Whistleblowers In False Claims Act Lawsuits

By Todd C. Toral and Greg Young The U.S. Court of Appeals for the Ninth Circuit, in a case likely heralding an increase in the number of qui tam False Claims Act lawsuits, has abrogated prior precedent and lowered the jurisdictional bar for whistleblowers in FCA cases. Repudiating 23 years of precedent...

Cadwalader: Federal Court Upholds Provider Mandate to Report and Return Medicare and Medicaid Overpayments in 60 Days

Introduction | The Patient Protection and Affordable Care Act (“PPACA”), signed into law on March 23, 2010, included a provision (the “Report and Refund Mandate”), broadly requiring health care providers, suppliers, Part D plans and managed care organizations that were overpaid...

DLA Piper LLP: Appeals Court Clarifies Attorney-Client, Work Product Privileges In Internal Investigation Context

By Jonathan W. Haray , Jeffrey D. Rotenberg and Lindsay R. Barnes In its latest review of the attorney-client and work product privileges in In re: Kellogg Brown & Root, Inc. (“ In re KBR ”), the US Court of Appeals for the DC Circuit again rejected the district court’s restrictive...

DLA Piper LLP: Federal Court Sides With Government In First Interpretation Of ACA’s 60-day False Claims Act Rule

By Adam J. Rogers , Bradley M. Smyer and Karen Nelson | In a significant development for healthcare providers, a federal court in New York has adopted the government’s interpretation of the 2010 Patient Protection and Affordable Care Act’s (ACA’s) so-called 60-day rule, which governs...

Cadwalader: D.C. Circuit Upholds Attorney-Client Privilege Again in In re Kellogg Brown & Root, Inc.

On August 11, 2015, the U.S. Court of Appeals for the D.C. Circuit granted a petition by Kellogg Brown & Root, Inc. (“KBR”) for a writ of mandamus in order to protect KBR’s assertion of attorney-client privilege over its prior internal investigation of alleged violations of the...

Barnes & Thornburg: DOJ Secures Big Win in First Court Interpretation of FCA’s 60-Day Overpayment Rule

By Jessica Talati On August 3, Judge Edgardo Ramos of the Southern District of New York denied hospital defendants’ motions to dismiss in United States ex rel. Kane v. Healthfirst, Inc., et al . , No. 11 CIV 2325 (S.D.N.Y. Aug. 3, 2015), keeping alive a much-followed whistleblower case accusing...

Williams Mullen: The Definition of Identify: The 60-Day Rule

By Ruth Levy & Patrick C. Devine, Jr. | The Patient Protection and Affordable Care Act (“PPACA”) established that any person who receives an overpayment from the Medicare or Medicaid programs and who does not report and return the overpayment within 60 days after it is identified will...

U.S. Government Sues Five Mortgage Lenders for False FHA Claims

by S. Mohsin Reza , Jason Manning and John C. Lynch On September 28, the U.S. government filed a lawsuit alleging that a purported charitable “counseling fund,” five mortgage lenders, and their principals defrauded the United States and various banks insured by the Federal Deposit Insurance...