Schwarz Pharma has agreed to pay $22 million to settle allegations that it violated the False Claims Act by misrepresenting the FDA approval status of two of its drugs. The settlement resulted from two separate qui tam, or whistleblower, actions which named multiple defendants. In conjunction with the settlement, the two whistleblowers will receive $1,836,575…
Johnson & Johnson Subsidiaries Settle False Claims Case for $81 Million
Two subsidiaries of Johnson & Johnson, Ortho-McNeil Pharmaceutical LLC and Ortho-McNeil-Janssen Pharmaceuticals Inc., have agreed to pay more than $81 million to settle allegations that they violated the False Claims Act by illegally promoting the epilepsy drug, Topomax. The total to be paid includes a criminal fine of $6.14 million, a federal civil settlement of…
AstraZeneca Pays $520 Million in Settlement; Whistleblower Receives $45 Million
AstraZeneca has agreed to pay the federal government $520 million to settle allegations that it illegally marketed the drug Seroquel for “off-label” uses – i.e., uses not approved by the FDA. The government alleged that by promoting Seroquel for unapproved uses, AstraZeneca caused the submission of false claims for payment to government healthcare programs, including…
Pfizer Inc. to Pay South Carolina $12.7 Million Settlement After Investigation
South Carolina has reached a nearly $12.7 million settlement with the pharmaceutical company Pfizer Inc. over an investigation into the company’s sales tactics. Last fall, the pharmaceutical giant settled with the other 49 states for a total of $331 million. In that case, it was alleged that Pfizer encouraged doctors to prescribe drugs for uses…
Mobil Oil Companies to Pay U.S. $32.2 Million to Settle False Claims Act Allegations
Mobil Natural Gas Inc., Mobil Exploration & Producing U.S. Inc. and their affiliates will pay the United States $32.2 million to settle claims that they knowingly underpaid royalties on natural gas they took from federal and American Indian leases, thereby violating the False Claims Act. Companies that produce natural gas from federal and American Indian…
Florida Health Care Provider and Physician to Pay $12 Million False Claims Act Settlement
Dr. Todd J. Scarbrough and Melbourne Internal Medicine Associates P.A. (MIMA) will pay the United States $12 million to settle allegations that they violated the False Claims Act by submitting false claims to Medicare and the military’s health care program TRICARE. Allegedly, the MIMA Cancer Center, led by Dr. Scarbrough, improperly inflated claims to Medicare…
Medicare Supply Company Ordered to Pay U.S. Over $19.3 Million for Violating False Claims Act
A Federal Court in Nashville awarded the United States $19,366,705 plus interest after finding that Renal Care Group (RCG), Renal Care Group Supply Company (RCGSC) and Fresenius Medical Care Holdings, Inc. disregarded federal law when billing Medicare. Allegedly, RCGSC submitted false claims to the Medicare program for reimbursement of home dialysis supplies provided to patients…
IRS Whistleblower Office Issues Whistleblowers Full Reward
Two tax whistleblowers will receive a reward of over several hundred thousand dollars due to the efforts of the IRS Whistleblower Office. Based on information the whistleblowers provided, John Hayden LaRue Jr., who owned Medical Contracting Services, Inc., was investigated by the IRS, indicted, and plead guilty to three counts of failing to file an…
Jury Decides Pfizer Should Pay $142.1 Million for Marketing Fraud
A jury in Boston federal court decided that Pfizer violated the federal Racketeer Influenced and Corrupt Organization Act (RICO) in marketing its epilepsy drug Neurontin and should pay $142.1 million in damages. The suit was brought by Kaiser Foundation Health Plan, Inc. and Kaiser Foundation Hospitals. Kaiser alleged that Pfizer illegally promoted Neurontin for unapproved…
Alpharma Inc. to Pay $42.5 Million in False Claims Act Settlement
Alpharma Inc., an American pharmaceutical manufacturer, will pay $42.5 million to settle False Claims Act allegations. The settlement resolves allegations that Alpharma paid health care providers to promote or prescribe Kadian, a drug used to treat moderate to severe chronic pain. The company is also alleged to have misrepresented the safety and efficacy of the…