Category: Pharmaceuticals

International Whistleblowing Legislation and America’s False Claims Act

This is the second part of a two-part article. In the first of this two-part series, we discussed the success of the United States’ federal False Claims Act (FCA),[1] the rise of international whistleblowers through a study of the Michael Epp case,[2] and what global companies need to do to prepare. In this follow-up, we review exemplary […]

When Is a Kickback Not a Kickback? Third Circuit Says It Must Be Linked to Specific False Claim

What Happened? In affirming the district court’s entry of summary judgment in favor of Accredo Health Group, Inc., and its co-defendants, the U.S. Court of Appeals for the Third Circuit held that a plaintiff alleging a False Claims Act (“FCA”) violation based on an anti-kickback theory must show that (1) a particular patient was exposed […]

Sanofi Aventis Can’t Invoke the First Amendment to Escape FCA Liability

United States ex rel. Gohil v. Aventis, Inc. is a long-running False Claims Act suit filed in the Eastern District of Pennsylvania by an ex-sales specialist against his former employer, behemoth pharmaceutical company, Sanofi Aventis.  Relator Yoash Gohil filed this qui tam suit in 2002 alleging that his former employer engaged in a fraudulent marketing […]

Major Drug Company Not Immune From FCA Liability For False Claims Submitted by Pharmacists

On Tuesday, in United States ex rel. Nevyas v. Allergan, Inc., an Eastern District of Pennsylvania district court denied pharmaceutical giant Allergan’s motion to dismiss False Claims Act (“FCA”) allegations brought against it by Relator eye doctors in the Philadelphia area. In so doing, the Court rejected Allergan’s novel argument that, since the allegedly false […]

PharMerica Agrees to Pay $31.5M Over False Claims Act Violations

On May 14, 2015, PharMerica Corp. agreed to pay $31.5 million to resolve a False Claims Act and Controlled Substances Act lawsuit alleging that the company had dispensed Schedule II controlled drugs without valid prescriptions and then billed Medicare for the improperly dispensed drugs. PharMerica, a long-term care pharmacy that dispenses medications to residents of […]

PharMerica to Pay $31.5 Million to Settle False Claims Act and Controlled Substances Act Lawsuit

The United States Department of Justice (“DOJ”) recently announced that PharMerica Corp. will pay $31.5 million, including more than $4 million to a whistleblower, to settle alleged violations of the Controlled Substances Act (“CSA”) and False Claims Act (“FCA”) related to the company’s improper dispensing of narcotics and submission of false claims to Medicare Part […]

Allergan Faces Whistleblower Lawsuit Alleging Payment Of Kickbacks To Induce Prescriptions For Lucrative Eye Care Drugs

Allergan Inc. paid kickbacks to induce prescriptions of the pharmaceutical company’s eye care drugs, according to allegations raised in a lawsuit unsealed on December 17, 2013 in federal court in Philadelphia. The lawsuit alleges that Allergan provided illegal inducements to eye care professionals throughout the United States, including business consulting services through its team of […]

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