Wednesday, September 01, 2010

Allergen Pleads Guilty to Misbranding Charges of Botox

The Department of Justice announced that Allergen Inc. will pay $600 million to resolve a federal probe of how it has marketed Botox, the injectable wrinkle smoother. The company will plead guilty to a single misdemeanor that it misbranded the drug during the period of 2000-2005, making claims for uses not then approved as safe and effective by the FDA. These included “off label” treatments of headaches, pain, spasticity, and juvenile cerebral palsy. At the time, Botox had only been approved for treating various muscle contractions, crossed eyes, and excessive sweating.

The DOJ accused Allergan of promoting Botox for therapeutic uses not approved by the FDA, paying kickbacks to encourage doctors to prescribe it and teaching them how to bill for off-label uses. The resolution includes a criminal fine and forfeiture totaling $375 million. As part of the civil settlement, Allergan has agreed to pay an additional $225 million to the federal government and the states to resolve claims that its unlawful marketing practices caused false claims to be submitted to government health care programs.

As part of today’s resolution, the five whistleblowers who brought the charges to the government’s attention will receive $37.8 million from the federal share of the settlement amount.

Click to read an article about this, “Allergan to pay $600 million to settle Botox probe.”

Hewlett-Packard Settles Whistleblower Lawsuit for $55 Million

The Justice Department announced that technology giant Hewlett-Packard will pay $55 million to settle claims that it paid kickbacks to systems integrators who recommended agencies buy HP products. In addition, the claim also resolves claims that HP’s 2002 contract with the GSA was defectively priced.

HP is one of a growing number of companies who are settling with the government or facing charges of violating the False Claims Act. They are the fourth of five companies to settle in allegations made by whistleblowers Norman Rille and Neal Roberts, who are entitled to a share of the recovery monies.  Rille and Roberts claimed that IBM, CSC, PWC, and Accenture received “influencer fees” for promoting HP products; only Accenture has not yet settled.

Click to read the entire article, “HP settles whistleblower lawsuit for $55 million.”

Student Loan Company Nelnet Pays $55-Million Settlement

Nebraska-based Nelnet will pay the federal government a settlement of $55 million to resolve a quitam lawsuit brought against it and other educational lenders. The lenders, who include the nation’s largest student-loan company, Sallie Mae, are accused of defrauding taxpayers of more than a billion dollars in student-loan subsidies.

The lawsuit was brought by Jon H. Oberg, a former Education Department researcher, on behalf of the federal government.  Seven years ago he discovered that Nelnet and other lenders were exploiting a loophole in a program that guaranteed a 9.5 percent return on certain loans.  This guarantee was made in the 1980s when Congress provided nonprofit lenders this rate of return as protection against a down economy. However, despite Congress having eliminating that guarantee in 1993, many loan companies claimed that government regulations allowed them to continue to receive the 9.5 percent return in a practice known as “recycling” - using the returns backed by the old loans to make new ones.

Click here to read the full article, “Nelnet to Pay $55-Million to Resolve Whistle-Blower Lawsuit.”

Tuesday, August 31, 2010

Source of Navigation Equipment Violates Trade Agreements Act; $695,063 Quitam Settlement Reached

The US Department of Justice and Furuno USA Inc. reached a $695,063 settlement in a quitam lawsuit over the purchase of electronic navigation equipment.

The navigation equipment was purchased by the US Coast Guard, US Navy and the General Services Administration. The equipment was manufactured in China, even after Furuno USA was advised by the government that the Trade Agreements Act prohibited its manufacture in that country.

Of the $695,063 settlement, $158,864 will be paid to the private whistleblower who alerted the U.S. that the equipment was Chinese.

Click here to read the full article, “US reach $695,000 settlement with Furuno USA in dispute over navigation equipment.”

Monday, August 09, 2010

Teva Pharmaceutical Settles Medicaid Fraud Claim

Israeli-based generic drug company Teva Pharmaceuticals agreed to pay $27 million to resolve Medicaid fraud claims. The settlement addresses allegations that the company set and reported inflated prices for medications dispensed in Florida pharmacies, who then received reimbursement by the state Medicaid program.

Florida Attorney General Bill McCollum claimed that by reporting inflated prices, Teva caused Medicaid to overpay millions of dollars. The Florida Agency for Health Care Administration, which administers the Medicaid program, will receive more than $7.1 million; the remaining funds will be remitted to the federal government and to the whistleblower, Ven-A-Care of the Florida Keys.

Click here to read the full article, “Teva settles Medicaid fraud claim for $27M.”

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