UCB will pay more than $34 million for its illegally promoting Keppra, an epilepsy drug, in the treatment of headaches and pain. The FDA approved Keppra to treat seizures in epileptic patients in 1995. A business plan that was included in the government’s sentencing memorandum showed migraine and other off-label uses would likely bring UCB…
Novo Nordisk Settles for $26.7 Million
Novo Nordisk will pay a $25 million settlement stemming from charges relating to alleged off-label marketing of hemophilia drugs to military and civilian physicians. The promotion of NovoSeven for unapproved uses exposed patients to deadly side effects and defrauded the federal government of millions of dollars. The whistleblowers behind the 2008 complaint are former Army…
Abbott Laboratories and U.S. Engaged in Settlement Discussions
Abbott Laboratories is nearing a settlement with the U.S. regarding a false claims suit over alleged off-label marketing of Depakote, an epilepsy drug approved for the treatment of migraines, seizures, and acute manic episodes in bipolar patients. Whistleblowers have claimed that the company instead marketed Depakote for disorders such as aggression in dementia patients, autism…
US to Bring Faulty Grenade Suit Against DSE
A federal judge has ruled the U.S. can bring suit against grenade manufacturers who allegedly sold defective grenades due to a rushed production schedule. The original whistleblower claim was filed by John King, a former quality-assurance manager who, after refusing to certify the quality of defective grenades, was fired by his employer, DSE Inc. King’s…
New SEC Whistleblower Rules Provide Added Incentive
According to rules adopted by the Securities and Exchange Commission, whistleblowers won’t be required to report wrongdoing to their employers in order to receive a cash reward. Under the new rules, the SEC will take voluntary participation in internal compliance programs into account when calculating cash rewards. Consequently, whistleblowers could see their rewards decreased if…
California to use FCA in Mortgage Cases
California Attorney General Kamala Harris has vowed to use the state’s False Claims Act as part of an effort by her new Mortgage Fraud Strike Force to pursue cases of fraud. The new force, which consists of 25 attorneys and investigators, will focus on individuals, institutions and municipalities, and will investigate the entire loan process,…
Par Pharmaceutical Cos Inc Settles Drug Pricing Allegations for $153 Million
Par Pharmaceutical Cos Inc., named as a defendant along with other pharmaceutical manufacturers in a suit brought by Florida-based Ven-A-Care under the False Claims Act whistleblower law, has settled for $153 million. Ven-A-Care claimed that the various companies accused, including the Woodcliff Lake, NJ-based Par, priced drugs so that government entities paid inflated reimbursements. Read…
DOJ Files Mortgage Fraud Lawsuit Against Deutsche Bank and MortgageIT
The United States filed a lawsuit against Deutsche Bank AG and its wholly owned subsidiary, MortgageIT Inc., seeking damages and civil penalties for repeated false certifications made to the U.S. Department of Housing and Urban Development (HUD) regarding residential mortgages and sponsorship practices. According to the complaint filed on May 3, MortgageIT endorsed more than…
Serono Will Pay $44.3 Million For Rebif Kickbacks
Serono Laboratories, Inc., EMD Serono, Inc., Merck Serono S.A., and Ares Trading S.A. have agreed to pay a $44.3 million settlement in connection with false claims allegations stemming from marketing of the drug Rebif. A 2005 claim filed by whistleblower Tim Amato alleges that between 2002 and 2010, Serono used kickbacks and other unlawful measures…
Justice Department Joins Whistleblower Suit Against For-Profit Education Management Corporation
Education Management Corporation (EDMC), a for-profit college chain that enrolls nearly 150,000 is charged with illegal practices to increase federal student aid revenue. The college chains that are part of EDMC include the Art Institute, Argosy University, Brown Mackie College and South University. Goldman Sachs owns 40% of EDMC. This is the first time that…