Monday, January 30, 2012

Ohio Weighing Passage of State FCA

Ohio State Senator Jim Hughes (R-Columbus) has introduced a proposal for an Ohio False Claims Act.  While some business groups have objected to what they call an incentive for litigious behavior, others have lauded the potential for the False Claims Act to aid the state in recovering substantial amounts of money lost to fraud. 

Read the entire article, “Ohio businesses, AG disagree on proposal that would give whistleblowers a cut in fraud cases"

Wednesday, January 25, 2012

DOJ Files Consent Decree in Ranbaxy Case

The Department of Justice filed a proposed settlement with Ranbaxy, under which the drug company has agreed improve its data integrity and compliance practices in order to resolve allegations that its manufacturing plants in India failed to meet current good manufacturing practices.  Under the consent decree, Ranbaxy will implement new procedures to ensure it meets data integrity requirements for drug applications, will hire a third party expert to audit its processes, facilities, and applications, and will withdraw any applications which contain false statements of facts or data.  Additionally, Ranbaxy has agreed to forfeit the usual 180 day marketing exclusivity period for three of its pending generic drug applications and will forfeit the exclusivity period for additional drugs if it fails to meet certain benchmarks.  The agreement must still be approved by the district court.

Read the entire press release, “Department of Justice files consent decree of permanent injunction against Ranbaxy"

Cayuga Medical Center Agrees to Pay $3.5 Million for Stark Law Violations

Cayuga Medical Center of Ithaca, New York has agreed to pay $3.5 million to resolve allegations that it violated the False Claims Act by engaging in improper physician recruiting practices.  After the suit was filed, Cayuga Medical Center voluntarily disclosed several other recruiting agreements which violated the Stark Law.

The whistleblower, a plastic surgeon who practiced in Ithaca, will receive $566,955.18 for his efforts in bringing the alleged wrongdoing to the government’s attention.

Read the entire press release, “Cayuga Medical Center of Ithaca, New York Settles Whistleblower Health Care Lawsuit for $3.5 Million"

Obama Taps NY AG Schneiderman to Lead Mortgage Fraud Task Force

President Obama has asked New York State Attorney General Eric Schneiderman to lead a special unit of federal prosecutors and state attorney generals tasked with investigating mortgage lending practices.  Mr. Schneiderman will co-chair the unit along with Lanny Breuer, Assistant Attorney General for the Criminal Division.

Many, such as New York Public Advocate Bill de Blasio, have praised AG Schneiderman for his commitment to fully investigating the allegedly fraudulent mortgage lending practices of many of the nation’s largest banks.

Read the entire article, “Eric Schneiderman to Lead Obama’s New Mortgage Abuse Unit"

Friday, January 20, 2012

NYC Evaluating Renewal of City FCA

New York City’s False Claims Act, originally passed in 2005, is set to expire in June 2012.  On January 20th, the City Council’s Committee on Governmental Operations heard testimony on the history of the act and whether it should be renewed.  In its written testimony, the New York City Law Department noted that seventeen on-going cases could be adversely affected if the city’s FCA were allowed to expire since the savings provision of the Act only protects actions which have been officially commenced before its expiration date.  The New York City Department of Investigation remarked that the city had received fifty two submissions under the city’s FCA, thirty of which were submitted in the last two years.  The Department of Investigation stressed that receiving advanced notice through NYC FCA complaints has been pivotal to its ability to effectively investigate alleged misconduct, recover funds, or stop fraudulent activities.

Whistleblower attorneys Neil Getnick and David Koenigsberg spoke of the importance of the city’s False Claims Act and suggested several potential reforms, including conforming the city’s act to the recently revamped New York State False Claims Act.  Mr. Getnick lauded the city for being a trailblazer in the field and encouraged the city to once again embrace that spirit and follow New York State in passing the most aggressive anti-fraud False Claims Act in the country.  The 2010 amendments to the state FCA provide for enhanced protections for whistleblowers, narrow the bar on actions derived from publicly disclosed information, and allow whistleblower-driven tax fraud actions.  Additionally, Mr. Koenigsberg suggested the city amend the act to permit whistleblowers to pursue the case after the city has declined to proceed.

Read the Committee Report and Hearing Testimony

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