False Claims Act Attorney Group

Actavis to Pay $118.6M for Medicaid Fraud

casey — Fri, 13 Jan 2012 01:18:44 +0000

On January 4, 2012, Bloomberg News reported that units of Actavis Group Hf agreed to pay $118.6 million to resolve claims that they caused the U.S. and four state governments to overpay for drugs.

The settlement, filed Dec. 29 in federal court in Boston, followed an $84 million accord announced a day earlier in a lawsuit by the state of Texas, bringing the total to $202.6 million. In February, a state court jury in Austin ordered units of the Iceland-based company to pay $170 million for inflating billings to the Texas Medicaid program.

In the larger accord, Actavis settled with the U.S., New York, Florida, South Carolina and Iowa. The U.S., Florida and Texas cases were filed by Ven-A-Care of the Florida Keys Inc., a specialty pharmacy which prosecuted them civilly.

Ven-A-Care sued under the U.S. False Claims Act and similar statutes in Florida and Texas, which lets whistle-blowers sue on behalf of the government and share in any recovery. The states pursued their cases separately.

Ven-A-Care claimed that Actavis defrauded the U.S. and state governments by falsely reporting inflated prices of drugs. Actavis knew that the governments would use those false reports to set higher reimbursement rates for Medicaid, Ven-A-Care claimed. Actavis denied wrongdoing in the settlements.

The Justice Department didn’t join the case, although it recovered $108 million. Between the two cases, Ven-A-Care collected $15.6 million, court records show.

If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

Merck to Pay $950 Million for Illegal Marketing of Vioxx

casey — Mon, 12 Dec 2011 02:14:17 +0000

U.S. Pharmaceutical Company Merck Sharp & Dohme to Pay Nearly One Billion Dollars Over Promotion of Vioxx®

On November 23rd, 2011, the Department of Justice announced that American pharmaceutical company Merck, Sharp & Dohme agreed to pay $950 million to resolve criminal charges and civil claims related to its promotion and marketing of the painkiller Vioxx^® (rofecoxib). Under the terms of the resolution, Merck plead guilty to a a violation of the Food Drug and Cosmetic Act (FDCA) for introducing a misbranded drug, Vioxx^®, into interstate commerce. Under the terms of its plea agreement with the United States, Merck will plead guilty to a misdemeanor for its illegal promotional activity and will pay a $321,636,000 criminal fine.

Merck is also entering into a civil settlement agreement under which it will pay $628,364,000 to resolve additional allegations regarding off-label marketing of Vioxx^® and false statements about the drug’s cardiovascular safety. Of the total civil settlement, $426,389,000 will be recovered by the United States, and the remaining share of $201,975,000 will be distributed to the participating Medicaid states. The settlement and plea conclude a long-running investigation of Merck’s promotion of Vioxx^®, which was withdrawn from the marketplace in September 2004.

Under the provisions of the FDCA, a company is required to specify the intended uses of a product in its new drug application to FDA. Once approved, the drug may not be marketed or promoted for so-called “off-label” uses – any use not specified in an application and approved by FDA – unless the company applies to the FDA for approval of the additional use. Merck’s criminal plea relates to misbranding of Vioxx^® by promoting the drug for treating rheumatoid arthritis, before that use was approved by the Food and Drug Administration (FDA). The FDA approved Vioxx^® for three indications in May 1999, but did not approve its use against rheumatoid arthritis until April 2002. In the interim, for nearly three years, Merck promoted Vioxx^® for rheumatoid arthritis, conduct for which it was admonished in an FDA warning letter issued in September 2001.

The parallel civil settlement covers a broader range of allegedly illegal conduct by Merck. The settlement resolves allegations that Merck representatives made inaccurate, unsupported, or misleading statements about Vioxx’s cardiovascular safety in order to increase sales of the drug, resulting in payments by the federal government. It also resolves allegations that Merck made false statements to state Medicaid agencies about the cardiovascular safety of Vioxx, and that those agencies relied on Merck’s false claims in making payment decisions about the drug. Finally, like the criminal plea, the civil settlement also recovers damages for allegedly false claims caused by Merck’s unlawful promotion of Vioxx for rheumatoid arthritis.

“We will continue to work with our law enforcement partners to aggressively investigate and prosecute pharmaceutical companies – no matter how large – when they improperly market their products,” said Daniel R. Levinson, Inspector General of the United States Department of Health and Human Services. “Merck’s comprehensive corporate integrity agreement requires top company officials to complete annual compliance certifications, and obligates Merck to post information about physician payments on its website.”

If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

Sandoz Agrees to Pay $150 Million to Resolve Drug-Price Case

casey — Sun, 11 Dec 2011 19:19:08 +0000

On November 23, 2011, Bloomberg News announced the settlement of a False Claims Act case in which Novartis AG’s Sandoz unit agreed to pay $150 million to resolve claims that it caused the U.S. and state governments in California and Florida to overpay for drugs.

The U.S. will recover $86.5 million, California will get $40 million and Florida will receive $15.2 million under the agreement filed Nov. 16 in federal court in Boston.

Ven-A-Care of the Florida Keys Inc., a specialty pharmacy, sued Sandoz under the U.S. False Claims Act, as well as similar laws in California and Florida. Ven- A-Care will get $8.3 million from Florida and California. Its share of the U.S. recovery wasn’t stated in court documents.

If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

Pfizer to Pay $14.5 Million for Off-Label Promotion of Detrol

casey — Wed, 26 Oct 2011 20:11:29 +0000

On October 21, 2011, the US Department of Justice announced that the American pharmaceutical company Pfizer Inc. agreed to pay $14.5 million to resolve False Claims Act allegations related to its marketing of the drug Detrol.

The settlement addresses allegations that Pfizer illegally marketed Detrol, a drug for the treatment of overactive bladder, for use in male patients suffering from benign prostatic hypertrophy and several allied conditions, for which the Food and Drug Administration (FDA) had not approved the drug as safe and effective.

Under the terms of the settlement, the $14.5 million recovery will be divided between the United States and participating state Medicaid programs, with $11,878,846 going to the federal government and $2,621,154 going to state Medicaid programs. Under the qui tam provisions of the False Claims Act, whistleblowers will receive a $3,282,019 share of the federal recovery.

“Whistleblowers play an important role in protecting taxpayer funds from fraud and abuse,” said Tony West, Assistant Attorney General of the Justice Department’s Civil Division. “Settlements like this one help maintain the integrity of FDA’s drug approval process and support important federal and state health care programs.”

If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

Jim VanderLinden featured on Minnesota Public Radio

nick — Tue, 27 Sep 2011 23:03:04 +0000

The problem of Medicaid fraud has been in the news a lot lately in Minnesota. These small victories have only scratched the surface, as many cases of large-scale Medicaid fraud have – as of yet – continued without consequence. Minnesota Public Radio’s Mark Olson recently interviewed our own Jim Vanderlindenfor a report on the fight against Medicaid fraud.

St. Louis Park attorney James Vander Linden represents whistleblowers, company insiders filing claims for money recovered from employers suspected of stealing funds. He has spent years trying to recover Medicaid and Medicare dollars, and he doesn’t think the government has enough muscle to go after the big time health care fraud perpetrators.

“The real problem,” he says, “is corporate America.”

Read the rest or listen to the story below.

Fresenius to Pay $83.6M to Settle Medicare Fraud Case

casey — Sat, 27 Aug 2011 18:47:29 +0000

On May 26, 2011, the US Department of Justice announced the settlement of a whistleblower case that found three medicare companies guilty of fraudulent billing to the Medicare program. Renal Care Group (RCG), Renal Care Group Supply Company (RCGSC) and Fresenius Medical Care Holdings, Inc. (FMC) will pay $82,642,592 plus costs for improper billing for home dialysis supplies and equipment from 1999 to 2005.

The Court’s orders in this case discuss the concerns of multiple RCG employees who complained about the operation and Medicare billing activity of the RCGSC, including one regional manager who wrote, “I do not wish to go to jail,” and felt the company’s actions “were not in the best interests of patients,” after receiving a corporate directive about converting patients into the RCGSC.

The government’s complaint alleged that between January 1999 and December 2005, RCGSC submitted claims to the Medicare program for home dialysis supplies provided to ESRD patients for reimbursement of the supplies and equipment. All of these claims, as well as related claims for support services rendered by RCG dialysis clinics were false because the defendants were prohibited from and not qualified to bill Medicare for these home dialysis patients.

Under federal law, the Medicare program pays companies that provide dialysis supplies to ESRD patients only if the companies that provide the supplies are truly independent from dialysis facilities and the ESRD patient chooses to receive supplies from the independent supply company. Defendants set up a sham billing company, RCGSC, that was not independent from RCG. Further, RCG interfered with ESRD patients’ choice of supply options, requiring patients to “move” to RCGSC. Even after RCG employees raised concerns and industry competitors closed their supply companies, RCG kept RCGSC open because of the illicit revenue it created.

Renal Care Group argued that they did not violate Medicare rules because of industry standards and certain disclosures to Medicare that RCG claimed to have made. However, the Court rejected those arguments because of the clarity of the Medicare requirements and RCG’s reckless disregard for Medicare’s legal mandates. The Court stated that the “Defendants cannot effectively set aside those commands by their cited interactions with Medicare officials.” The Court further noted that RCG failed to heed the advice of the company’s lawyers when operating the supply company, and also discussed an internal audit of the supply company that found that 100% of the company’s files were missing information that Medicare required for billing.

If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

Dyncorp and Sandi Group Pay $8.7M to US for Fraud in Iraq

casey — Sat, 27 Aug 2011 18:39:54 +0000

On April 22, 2011, the US Department of Justice announced the settlement of a whistleblower lawsuit against DynCorp International LLC and The Sandi Group (TSG). The lawsuit alleged that DynCorp and its subcontractor TSG submitted false claims for payment under DynCorp’s contract with the Department of State to provide civilian police training in Iraq.

DynCorp has agreed to pay the United States $7.7 million to resolve allegations that it submitted inflated claims for the construction of container camps at various locations in Iraq. TSG agreed to pay $1.01 million to resolve allegations that it sought reimbursement for danger pay that it falsely claimed to have paid its U.S. expatriate employees working in Iraq.

The lawsuit was initially filed by two former TSG employees under the qui tam or whistleblower provisions of the federal False Claims Act, which permit private individuals, called “relators” to bring lawsuits on behalf of the United States and receive a portion of the proceeds of a settlement or judgment awarded against a defendant.

As a result of the settlement, the two, Drew Halldorson and Brian Evancho, will receive up to $481,710 as their share of the government’s recovery.

“The hard work of stabilizing Iraq is challenging enough without contractors and subcontractors inflating the cost of rebuilding by making false claims at taxpayers’ expense,” said Tony West, Assistant Attorney General for the Civil Division. “This case demonstrates that the Department of Justice will pursue these cases that undermine the integrity of our public contracting process.”

“False claims filed by contractors have been a problem in Iraq,” said Stuart W. Bowen Jr., Special Inspector General for Iraq Reconstruction (SIGIR). “While SIGIR continues to pursue a number of allegations in this regard, I am pleased to see that today one of those cases has come to just resolution. I commend the Department of Justice prosecutors, the Department of State investigators and my SIGIR team for working together to achieve this important victory on behalf of the U.S. taxpayers.”

If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

German Security Company Pays U.S. 6.5M Euros to Settle False Claims Allegations

casey — Sat, 27 Aug 2011 18:12:47 +0000

On April 5, 2011, the US Department of Justice announced that Securitas GmbH Werkschutz has paid the United States 6,529,042 Euros (approximately $9.1 million) to settle allegations that the German company billed the Army, under contracts to provide security at U.S. Army installations in Germany, for guard hours not actually worked. The United States alleged that the overcharging violated the False Claims Act and brought counterclaims based on fraud in several actions that Securitas had filed against the Army in the Court of Federal Claims in Washington, D.C.

Under the terms of the settlement agreement, Securitas paid the United States the 6,529,042 Euros to resolve its potential liability under the False Claims Act, other anti-fraud provisions and the common law. Securitas also agreed to dismiss its own claims in the Court of Federal Claims against the Army, totaling 4,449,658 Euros (approximately $5.7 million).

“We won’t tolerate military contractors who overcharge the American taxpayers for services,” said Tony West, Assistant Attorney General of the Justice Department’s Civil Division. “This case illustrates that the United States will pursue the full range of potential remedies for false or fraudulent claims to ensure defense contractors are dealing fairly with the American people.”

If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

Verizon Pays $93.5 Million for Overcharging Government

casey — Sat, 27 Aug 2011 18:05:36 +0000

On April 5, 2011, the US Department of Justice announced that Verizon Communications Inc. has paid the United States $93,525,410.96 to resolve allegations that the company overcharged the General Services Administration (GSA) on invoices dealing with government-wide voice and data telecommunications services contracts.

Verizon subsidiary MCI Communications Services Inc. dba Verizon Business Services is alleged to have invoiced GSA for a variety of federal, state and local taxes and surcharges in violation of the contracts or applicable regulations in connection with the FTS2001 and FTS2001 Bridge contracts. The department’s joint investigation with GSA’s Office of the Inspector General (OIG) found that Verizon and MCI submitted false claims under the contracts for the reimbursement of property taxes, common carrier recovery charges and unallowable surcharges, charges that are not directly reimbursable under the FTS2001 contracts.

“A government contract is not a blank check,” said U.S. Attorney Ronald C. Machen Jr. “Contractors who overbill the government will be aggressively pursued and required to make the taxpayers whole. This $93 million recovery should make contractors realize that we are firmly committed to ensuring the integrity of corporate billing practices with respect to government programs.”

If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

Occidental Oil to Pay $2.5M for Royalty Underpayments from Federal Land

casey — Sat, 27 Aug 2011 17:57:23 +0000

On March 22, 2011, the US Department of Justice announced the settlement of claims that Occidental Oil and Gas Corporation and OXY USA Inc. knowingly underpaid royalties owed on natural gas produced from federal leases. This is a violation of the False Claims Act. Occidental Petroleum Corporation is an international oil and gas exploration and production company headquartered in Los Angeles.

The settlement arises from a lawsuit filed by a whistleblower, Harrold Wright, under the False Claims Act against the Occidental oil companies as well as a number of other companies. Because Mr. Wright is deceased, his heirs will receive $91,000, plus interest, as his share of the settlement. The United States initially declined to participate in this case, but was actively involved in the discussions that led to this settlement. The current settlement brings the total recovery in the case to approximately $230 million.

Congress has authorized federal land to be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas that is produced. Each month, companies are required to report to the Department of the Interior the amount of royalty that is due. This settlement resolves claims that the Occidental oil companies improperly deducted the cost of boosting gas up to pipeline pressures from the royalty values they reported, and failed to properly report and pay royalties related to a natural gas keep-whole agreement, pool pricing for gas and gas re-sold to affiliates.

If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.