$40.9 Million to be Paid by King’s Daughters Medical Center to Resolve False Claims

The Justice Department announced that Ashland Hospital Corp. d/b/a King’s Daughters Medical Center (KDMC) has agreed to pay nearly $41 million for needless medical procedures, between 2006 and 2011, including coronary stents and diagnostic catherizations that were submitted falsely to the Kentucky Medicaid and federal Medicare programs.  It is also alleged that the hospital had a prohibited financial relationship with physician to refer patients to the hospital.

Astellas Pharma US, Inc. Reaches Agreement With DOJ

Astellas Pharma US Inc. has agreed to pay $7.3 million to resolve claims that it marketed and promoted Mycamine for pediatric use from 2005 through 2010, in violation of the False Claims Act. During that period, Mycamine was approved to treat serious fungal infections in adults. State Medicaid programs will receive $3.1 million of the settlement monies and the remaining $4.2 million will be paid to the federal government.

Whistleblower Paid $63.9 For J.P. Morgan Concealment Of Bad Mortgages

Whistleblower, Keith Edwards, will recover $63.9 million for his false claims act lawsuit in which he revealed that J.P. Morgan Chase had submitted thousands of mortgages for governmental insurance through the Federal Housing Authority and Veterans Administration that did not qualify for those government guarantees. The government ultimately had to cover for these loans when they defaulted.

Pittsburgh Post Gazette Exposé On Local Whistleblowers

The Pittsburgh Post-Gazette recently published an in-depth article on the growth of local false claims act cases and the whistleblowers behind them. The article focused on efforts of Dave Hickton, U.S. Attorney for the Western District of Pennsylvania, who has diverted more of his office’s resources to false claims act cases.

Big Pharma Takes A Big Hit

Endo Health and its subsidiary Endo Pharmaceuticals will pay $192 million to settle false claims act after whistleblower uncovered off-label marketing of Lidoderm. The FDA only approved Lidoderm for treatment of a complication of shingles. The company required its sales staff to market the drug for unapproved ailments including low-back pain and carpal tunnel syndrome.

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