Kentucky, which has yet to pass a False Claims Act, may not join a suit against Education Management Corp., even though it paid more than $6 million in financial aid grants on behalf of students who attended Education Management colleges. Kentucky had hoped to intervene under its consumer protection laws, but the judge ruled that…
Pfizer to Pay $14.5 Million for FCA Violations
Pfizer agreed to pay $14.5 million to resolve allegations that it violated the False Claims Act by marketing Detrol, a medication approved to treat overactive bladders, for off-label uses. In an effort to increase sales, Pfizer allegedly pushed the use of the drug to treat enlarged prostates, paid kickbacks to doctors who prescribed Detrol for…
Abbott Laboratories Prepares for Potential Settlement
Although settlement negotiations are ongoing, inside sources say that Abbott Laboratories has informally agreed to pay $1.3 billion dollars to resolve allegations surrounding its off-label marketing of anti-seizure drug Depakote. According to those sources, the settlement is not yet finalized and will not be made public until approximately December. This number is consistent, however, with…
Premier Home Care Agrees to Pay $600,000
Premier Home Care agreed to pay $600,000 to settle allegations that it allowed unlicensed technicians to set up its continuous positive airway pressure respiratory machines in patient homes, despite certifications made to Medicare and Medicaid that all technicians were licensed. Although Premier denied liability, it settled for more than double the amount of the estimated…
California Issues Subpoenas to Bank of America
The California Attorney General’s office issued subpoenas to Bank of America and Countrywide Financial, a subsidiary Bank of America acquired in 2008. The subpoenas relate to an investigation of Bank of America’s sale of mortgage-backed securities. California recently backed out of settlement negotiations between the nation’s biggest banks and the federal and multiple state governments….
Purdue Execs Challenge 12 Year Suspension
Three former executives of Purdue Frederick are appealing a federal district court’s ruling upholding the Department of Health and Human Service’s (HHS) decision to ban them from working at any company that does business with federal healthcare programs for twelve years. Purdue Frederick, the company that manufactures OxyContin, pled guilty to felony misbranding for failing…
President and CEO of Louis Berger Group Inc. Indicted
Derish Wolff, former president and CEO of Louis Berger Group Inc., has been indicted by a federal grand jury for a fraudulent scheme for which the company has already admitted liability. According to the indictment, Wolff conspired with other employees to submit claims to the U.S. government for inflated overhead and additional indirect costs for…
BNP Parabas Helped Exporter Get $78 Million in False Claims
BNP Parabas, a French bank, has been sued under the False Claims Act for allegedly knowingly aiding a grain exporting and importing company in circumventing Department of Agriculture regulations. Under the Department of Agriculture’s Supplier Guarantee Program, U.S. exporters are guaranteed payment for shipments of commodities to foreign importers. However, if both the exporter and…
U.S. Triples Medicaid Recoveries
In 2010, the U.S. recovered $1.85 billion through Medicaid fraud prosecutions alone–three times that collected in 2004. This increase is largely due to a significant increase in funding to state Medicaid Fraud Control Units, who have received an additional $74.5 million. Additional factors which contributed include the requirement that providers maintain electronic records for Medicare…
Federal Government Recovered $1.8 Billion Lost to Medicaid Fraud in 2010
According to new data from the Office of Inspector General, the federal government has recovered over $1.84 billion of federal funds lost to Medicaid fraud in 2010 alone. The greatest recoveries came from New York, Texas, Florida, California, and Ohio. Read the entire report, “Feds recover $1.84B from Medicaid fraud: 5 states top the list”