Irish pharmaceutical manufacturer Elan Corporation, PLC, its U.S. subsidiary, Elan Pharmaceuticals, Inc., and Japanese drug manufacturer Eisai, Inc., have all agreed to pay a total for $214.5 million to resolve allegations of off-label promotion of Zonegran, an epilepsy drug. Elan Pharmaceuticals agreed to plead guilty to misbranding Zonegran, which was approved by the FDA in…
Three Drug Companies Settle Charges of Defrauding Medicare and Medicaid
Abbot Laboratories of North Chicago, IL,, Roxane Laboratories (also known as Boehringer Ingelheim Roxane Inc.) of Columbus, OH, and R. Braun Medical of Bethlehem, PA, have agreed to pay more than $421 million to settle claims of Medicare and Medicaid fraud. The government alleged that these companies charged one set of prices to doctors and…
Kos Pharmaceuticals Settle Kickback and Off-Label Promotion Charges
Delaware-based Kos Pharmaceuticals ageed to pay more than $41 million to resolve alleged misconduct relating to its drugs Advicor and Niaspan. Kos, a subsidiary of Abbott Laboratories, will pay $38 million to settle charges that it offered doctors and other medical professionals and organizations money, free travel, grants, honoria and other goods and services to…
Largest Two-Year Recovery of Taxpayer Dollars Under the False Claims Act
The Department of Justice recovered $3 billion in false claims cases during fiscal year 2010. This includes the largest ever in health care fraud recoveries – $2.5 billion – and the second largest annual recovery of civil fraud claims. In addition, the $5.4 billion recovered since January 2009 by federal programs and the Treasury under…
American Grocers Pay $13.2 Million for Shipping Expired Food to U.S. Troops
American Grocers, Inc., and its owner Samir Itani, agreed to pay $13.2 million to resolve allegations that it shipped food products past or near their expiration dates to U.S. troops stationed in the Middle East. Whistleblower Delma Pallares, who worked for American Grocers as a logistics manager and general merchandise manager, uncovered the alleged scheme…
Student Aid Lenders Settle Whistleblower Suit for $57.75 Million
Nelnet Inc. and Nelnet Educational Load Funding Inc., Brazos Higher Education Authority and Brazos Higher Education Service Corp, Panhandle Plains Higher Education Authority and Panhandle Plains Management and Servicing Corp have settled a False Claims suit for a total of $57.75 million. The suit was brought by Dr. Jonathan Oberg, a former Department of Education…
Ameritox to Pay $16.3 Million to Settle False Claims Lawsuit
Midland, TX-based Ameritox, a drug-testing company that serves 10,000 doctors and two million patients in 28 states, has settled claims that they paid kickbacks to doctors for $16.3 million. Ameritox faced allegations that it paid doctors to win their Medicare business. The original whistle-blower in the case, Debra Maul, will receive $3.4 million of that…
Afghanistan Contractor Pays $63.9 Million For Overcharging U.S. Government
The NJ-based Louis Berger Group agreed to pay $69.3 million in criminal and civil penalties for knowingly overcharging the U.S. government for its work in constructing roads, power plants and schools across Afghanistan. The charges were brought by whistleblower Harold Salomon, a former employee, who plans to donate part of his 15-20 percent share in…
New York Times Reports on GlaxoKlineSmith Product Contamination Settlement
An article in The New York Times reported on the Getnick & Getnick groundbreaking whistleblower case that resulted in GlaxoKlineSmith’s $750 million settlement for knowingly selling contaminated baby ointment and ineffective antidepressants. The New York Times stated that GlaxoSmithKline “sold 20 drugs with questionable safety that were made at a huge plant in Puerto Rico…
Getnick & Getnick Wins $750 Million Settlement for GlaxoSmithKline Medicaid Fraud
In a groundbreaking case, the first time the whistleblower law was used to hold drug makers accountable for violations of government manufacturing standards, GlaxoSmithKline (GSK) will pay $750 million to settle civil and criminal charges that it manufactured and sold adulterated drugs to Medicaid and other government health plans. This settlement is a result of…