Thursday, January 19, 2012

Johnson & Johnson Settles Texas Case

Johnson & Johnson has reportedly agreed to pay $158 million to settle the Texas case that went to trial last week.  Texas alleged that Johnson & Johnson aggressively marketed its anti-psychotic drug Risperdal for off-label uses in children and the elderly, in spite of serious safety concerns.  This settlement is in addition to the alleged $1 billion settlement with the federal government reported last week.

Read the entire article, “Johnson & Johnson subsidiary says drug lawsuit settled with Texas for $158 million"

Tuesday, January 17, 2012

$1B Johnson & Johnson Settlement with U.S. Rumored; Trial Begins in Texas

Johnson & Johnson continues to battle lawsuits related to its marketing of Risperdal, an anti-psychotic drug.  After being ordered to pay nearly $660 million after losing cases in South Carolina and Louisiana and prevailing in West Virginia and Pennsylvania, the company has reportedly settled related allegations with the federal government and several states for $1 billion.  One state which did not join that settlement is Texas, who began its civil trial against the company on Tuesday.

Johnson and Johnson is alleged to aggressively marketed Risperdal for off-label uses, including for children and elderly patients with dementia, while discounting the risks associated with the drug.  The Texas lawsuit also includes allegations that the company promoted misleading research studies and paid state mental health officials in order to gain approval of drug guidelines that favored Risperdal.  The Texas suit was filed by a Pennsylvania official who uncovered the alleged payments to Texas state mental health officials during an investigation of the company’s practices.  One official who allegedly accepted payments or trips from Johnson & Johnson testified on Wednesday.  He stated that the payments in no way influenced his decisions and that any consulting work he did for the company was on his own time and was entirely unrelated to his position as a state official.  On Thursday the whistleblower who brought the case to the government’s attention gave evidence stating that he was fired after initiating an investigation against Johnson & Johnson.

Read the entire articles, “J&J to Oppose Texas in $1 Billion Trial Over Risperdal Marketing"; “A Texas Official On The Johnson & Johnson Payroll"; “J&J Whistle-Blower Jones Says He Was Fired After Payment Probe"

Wednesday, January 11, 2012

Radiology Company Sued for Kickbacks, Testing Practices

A medical radiology company, Universal Imaging, has been sued under the False Claims Act for allegedly violating Medicare rules on supervision of diagnostic tests and for paying kickbacks for referrals for testing services.  One doctor, who allegedly ordered a dangerous amount of tests involving injection of radioactive materials after receiving payments from Universal, has also been sued.  Fourteen other physicians or practices already settled similar allegations for a collective $1.56 million.

The suit was brought by a former Universal employee and was recently joined by the United States government

Read the entire article, “U.S. government alleges Medicare fraud in $150M complaint"

USAO: Settlement Close with BNY Mellon

According to documents filed in federal court, the U.S. Attorney’s Office for Manhattan is “close” to reaching a settlement with BNY Mellon, resolving “some or all” of the allegations that the bank defrauded customers through its foreign currency exchange services.  According to the complaint, the bank promised customers that it would give them the best daily rate for foreign currency exchanges, but instead gave them the worst rate for the day.  The bank then allegedly pocketed the profit.

The potential settlement would likely resolve only the federal suit, and not another suit brought by the New York State Attorney General’s Office.

Read the entire article, “BNY Mellon in talks to settle overcharging suit"

Tuesday, January 10, 2012

L.A. Pastor Gets 15 Years for Healthcare Fraud

A Los Angeles pastor has been sentenced to 15 years in prison after being found guilty for his role in orchestrating a health care fraud conspiracy.  Christopher Iruke, his wife, and several others fraudulently billed Medicare for power wheelchairs and orthotics that were either medically unnecessary or never provided.  The group paid recruiters to offer beneficiaries free devices or wheelchairs in exchange for their Medicare information.  That information was then used to create fraudulent prescriptions and documentation that the group used to bill Medicare.  The group defrauded Medicare of nearly $6.7 million, which they have been ordered to repay.

Read the entire article, “Pastor Gets 15 Years for Massive Medicare Fraud"

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