Actavis Group has agreed to pay $84 million to resolve allegations that it reported inflated prices in order to increase the amount that Medicaid and other healthcare companies would pay for its prescription drugs. The settlement comes after a Texas jury ruled against Actavis for $170.3 million last February. As part of the settlement, both…
Documents Released in BNY Mellon Case
Many confidential documents in the fraud case against BNY Mellon have been released to the public. The suit alleges that BNY Mellon defrauded customers of millions of dollars by giving those trading in a foreign currency exchange the worst exchange rate for a day while giving customers the understanding that they were receiving the best…
Neil Getnick on NPR: Record Year for DOJ Health Care Fraud Prosecutions
According to an NPR report, 2011 was a record-breaking year for the prosecution of healthcare fraud. The Justice Department, which has been working to change the model for addressing healthcare fraud, pursued over one thousand new criminal prosecutions in the last year. Rather than the old “pay and chase” model, attempting to get the money…
Second Judge Rejects an SEC Settlement
After Judge Rakoff’s rejection of the SEC’s proposed settlement with Citigroup, a Milwaukee federal judge has questioned another SEC settlement. U.S. District Judge Rudolph Randa rejected the settlement with Koss Corp., a headphone manufacturer accused of accounting fraud, saying that the settlement was too vague and that more facts were needed. The SEC has been…
Judge Upholds $327 Million Verdict Against Johnson & Johnson
A South Carolina circuit court judge upheld a $327 million jury verdict against Johnson & Johnson for its marketing of Risperdal, an anti-psychotic drug. The case is one of several currently pending against the drug manufacturer alleging that it overstated the safety and effectiveness of Risperdal in marketing the drug to prescribing physicians. The drug…
Aon Corp. to Pay $16.2M to Resolve Foreign Bribery Allegations with DOJ, SEC
Aon Corporation, an insurance brokerage firm, will pay over $16.2 million to settle allegations that it violated the Foreign Corrupt Practices Act by making improper payments to government officials in countries such as Vietnam, Costa Rica, Egypt, and the United Arab Emirates. According to the government, the company’s subsidiaries paid over $3.6 million in bribes,…
Bank of America to Pay $335 Million for Countrywide’s Discriminatory Lending
Bank of America has agreed to pay $335 million to settle allegations that Countrywide Financial Corp., which it purchased in 2008, charged minority borrowers higher fees on subprime or prime loans or offered only subprime loans to borrowers who qualified for the more attractive prime loans. The investigation, begun in 2008 by the Illinois Attorney…
Ranbaxy Laboratories to Pay $500 Million; Company Cuts Exec Pay
Ranbaxy Laboratories announced that it had made provision to pay $500 million in connection with a civil and criminal investigation by the Department of Justice relating to violations of the current Good Manufacturing Practices and falsification of records allowing the company to produce and sell medications that failed to meet FDA standards. The drugs were…
Merck to Pay $24 Million to Massachusetts for Pricing Fraud
Merck became the thirteenth and final drug manufacturer to settle a pending suit brought by the state of Massachusetts alleging that it reported inflated prices in an effort to increase the reimbursements paid for its drugs by Medicaid and other health insurance plans. The company has agreed to pay $24 million. Merck lost its case…
SEC Chairman Discourages Attempt by Some in House to Undermine Whistleblower Program
SEC Chairman Mary Schapiro criticized a Congressional effort to make changes to the recently-effective SEC whistleblower program in a letter to Congressman Barney Frank (D-MA). The bill, proposed by Congressman Michael Grimm (R-NY), waters down the program in response to complaints from corporations. One key change would require whistleblowers to first report through their company’s…