Monthly News Roundup: Whistleblower Litigation

Whistleblower Litigation – The latest updates around AstraZeneca and Cephalon, recently unsealed whistleblower cases & more.

AstraZeneca and Cephalon to Pay $46.5 Million and $7.5 Million, Respectively, for Allegedly Underpaying Rebates Owed Under Medicaid Drug Rebate Program

AstraZeneca LP has agreed to pay the United States and participating states a total of $46.5 million, plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program, the Justice Department announced today. Of that amount, AstraZeneca will pay roughly $26.7 million, plus interest, to the United States, and the remainder to states participating in the settlement … [ Read More ]

Recently Unsealed Whistleblower Cases: Health Care Qui Tam Update July 2015

We have identified 36 health care–related qui tam cases that have been unsealed since the cases covered in our last Qui Tam Update. Of these cases, eight were filed within the last year. A number of the cases unsealed during May and June were filed several years ago … [ Read More ]

DOJ July activity

DOJ Fraud Settlements

July 10, 2015 — Detroit area doctor Farid Fata was sentenced to 45 years in prison and to forfeit $17.6 million for his role in a health care fraud scheme that included administering medically unnecessary infusions or injections to 553 individual patients and submitting to Medicare and private insurance companies approximately $34 million in fraudulent claims. DOJ July 6, 2015 — LB&B Associates Inc. and its principals, Lily A. Brandon and F. Edward Brandon, agreed to pay $7.8 million to resolve allegations they made false statements to obtain contracts through the Small Business Administration’s (SBA’s) 8(a) Business Development Program for Small Disadvantaged Businesses. The allegations first arose in a whistleblower lawsuit filed by Steven O. Sansbury and James T. Buechler, former employees of LB&B, under the qui tam provisions of the False Claims Act. They will receive a whistleblower award of $1.5 million. DOJ July 6, 2015 — AstraZeneca LP and Cephalon Inc. agreed to pay $46.5 million and $7.5 million, respectively, to settle charges they violated the False Claims Act by knowingly underpaying rebates they owed under the Medicaid Drug Rebate Program. The allegations first arose in a whistleblower lawsuit filed by pharmacist Ronald J. Streck under the qui tam provisions of the False Claims Act. He will receive a yet-to-be-determined whistleblower award. Whistleblower Insider July 1, 2015 — The U.S. District Court for the District of New Jersey entered a consent decree of permanent injunction against Acino Products LLC and its president, Ravi Deshpande, to prevent the distribution of unapproved and misbranded drugs. Specifically, the injunction involves hydrocortisone acetate suppositories under the brand names Rectacort-HC and GRx HiCort 25 and government charges these suppositories are not approved by the FDA and are misbranded because they do not bear adequate directions for use as required by law. DOJ