BP Amoco Corp, BP America Inc., and other related companies (BP) have agreed to pay the U.S. government $20.5 million to settle allegations that they defrauded the federal government out of royalties on natural gas obtained from federal lands. The defendants fraudulently reduced the amount of royalty payments to the U.S by deducting the cost…
Aventis, Pfizer, Schering and Bayer Settle AWP Claims with Pennsylvania
Four more drug companies have settled allegations that they manipulated the Average Wholesale Price of their drugs, a practice that increases the amount that federal and state healthcare companies pay and enables drug companies to give doctors and pharmacies unlawful incentives in the form of extra profits. Aventis, Bayer, Schering, and Pfizer will pay $49…
Sandoz Loses AWP Case in Mississippi
Sandoz, Inc. is the latest company to fall in an ongoing series of litigation surrounding fraudulent manipulation of Medicaid’s Average Wholesale Price by pharmaceutical companies. Sandoz lost the case filed against it in Mississippi State Court. Judge Zebert found that Sandoz had violated the state’s Consumer Protection Act and had committed Common Law Fraud. Sandoz…
Watson and Novartis Settle Ven-A-Care Allegations
Watson Pharmaceuticals and the Sandoz unit of Novartis AG are the latest companies to settle with the federal and several state governments as a result of ongoing litigation brought by Ven-A-Care of the Florida Keys alleging that several manufacturers overcharged Medicaid for prescription drugs by inflating their Average Wholesale Prices. Watson agreed to pay $79…
FCA Violations Result in Shareholder’s Derivative Suit for Oracle
A shareholder’s derivative suit was filed against Oracle Corp. based upon actions by its board of directors which resulted in an $8 million False Claims Act settlement in 2005, a $98.5 million False Claims Act settlement in 2006, and a currently pending False Claims Act case. The suit alleges that the board of directors’ actions…
Government Suit Vs. Bomb Fuse Manufacturer Continues
A federal district judge in Orlando denied a motion to dismiss a False Claims Act suit against Kaman Precision Products, a manufacturer of bomb fuses. Kaman is alleged to have substituted a different fuse motor for that specified under contract in order to meet the government’s increased needs following the invasion of Iraq in 2003….
U.S. Partially Intervenes Against Halifax Hospital
The U.S. government partially intervened in a suit brought by a whistleblower against Halifax Hospital alleging that contracts it entered into with a group of oncologists and neurosurgeons were illegal. According to the complaint, Halifax Hospital paid these doctors more than fair market value for their services and, in some cases, took into consideration the…
Accenture Settles with U.S. Government in IT Fraud Case
Accenture LLP, a management consulting and technology services firm, agreed to pay $6.37 million to resolve allegations that it violated the False Claims Act in connection with government contracts for IT services. According to the complaint, which was filed by a whistleblower, Accenture received kickbacks for recommending particular hardware and software products to the U.S….
Maxim Health Care Reaches $150 Million Settlement, Nine Employees Charged
Maxim Health Care agreed to pay $150 million to resolve criminal charges and civil False Claims Act suits that began when a patient noticed that he had been over-billed for more than 700 hours of services which were never provided. After the patient brought a qui tam case against Maxim, the New Jersey Attorney General,…
False Claims Act Case Brought Against Par Pharmaceuticals
A qui tam complaint against Par Pharmaceuticals was unsealed yesterday in Chicago. The complaint alleges that Par Pharmaceuticals and two foreign companies – Alphapharm PTY Ltd. and Genpharm ULC – conspired with pharmacies to switch generic prescriptions to Par Pharmaceuticals’ generic version, allowing them to charge Medicaid higher prices. The suit against Par Pharmaceuticals has…