Author: Qui Tam

Merck Settles Massachusetts Medicaid Fraud Allegations for $24 Million—Total Recovery Now $47 Million

Merck & Co, Inc., the second largest drug manufacturer in the nation, agreed to pay $24 million to the Commonwealth of Massachusetts to settle allegations that it knowingly reported inflated drug prices to the Massachusetts Medicaid program.  The $24 million settlement is the largest single payment made to the Commonwealth for any one Medicaid fraud case in the state’s history,

More than $3 billion recovered under False Claims Act in 2011

The Department of Justice (DOJ) announced that it has recovered over $3 billion in settlements and judgments under the False Claims Act in 2011.  Of that $3 billion, $2.8 billion was recovered under the qui tam provisions of the False Claims Act.  This is the second year in a row that the DOJ has recovered more than $3 billion under the Act and it has now collected more than $8.7 billion under the Act since January 2009. 

SEC Chair Wants Whistleblower Program to remain in Place

SEC Chair Mary Schapiro advised Dodd-Frank sponsor, Barney Frank, that the new SEC whistleblower program is yielding results and that no changes should be made to the program without further study of its effects.  In a letter to Frank, Schapiro contended that the SEC whistleblower program is providing “significant benefits. 

U.S. Tax Court Protects IRS Whistleblower’s Anonymity

On December 8, 2011, the U.S. Tax Court held that a whistleblower filing under 7623(b) of the IRS whistleblower provisions was entitled to remain anonymous in the case record to protect against retaliation and professional ostracism. In the landmark decision of Whistleblower 14106-10W v. Commissioner, 137 T.C. No. 15 (T.C.

Diakon Lutheran Social Ministries to Pay $10.56 Million for Improper Hospice Reimbursement

Diakon Lutheran Social Ministries, a charitable organization operating as Diakon Hospice St. John (Diakon), agreed to pay the U.S. $10.56 million to settle allegations that it submitted claims for Medicare reimbursement for ineligible hospice patients from October 1, 2004 to October 1, 2010.   Diakon, which is part of the Evangelical Lutheran Church of America,

KV Pharmaceutical to Pay $17 Million for Unapproved Drug Reimbursement

KV Pharmaceutical Company, the St. Louis parent corporation of the now defunct Ethex Corporation, has agreed to pay $17 million to the federal and state governments to resolve allegations that Ethex fraudulently received reimbursement for two of its drugs from federal healthcare programs. According to allegations made by relator Constance Conrad in U.S.

Pennsylvania Needs a False Claims Act to Fight Fraud

In an excellent op-ed piece written for the Lehigh Valley’s Morning Call, David Williams of Kline & Specter describes why Pennsylvania needs a False Claims Act to combat fraud against the state.  Citing a 2005 study by the Pennsylvania attorney general’s office, Williams notes that fraudulent activities have consumed more than ten percent of Pennsylvania’s healthcare costs. 

Merck to Pay $950 million to settle Vioxx allegations

Merck has agreed to plead guilty to a misdemeanor criminal charge and pay $950 million to the federal and state governments to resolve allegations that it illegally marketed its painkiller drug Vioxx for off-label use and made false statements about the drug’s cardiovascular risks. Merck not only withheld data showing that Vioxx increased patient’s risks of heart attack and stroke,

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