Tuesday, September 30, 2008

Biotech Company Pays $425 Million for Medicaid and FDA Fraud

A sealed qui tam lawsuit has just been revealed to the public: Cephalon, a biotech drug manufacturer, will pay $375 million in their Medicaid settlement and $50 million in a corporate criminal plea. According to the complaint filed in 2003, the company was heavily marketing their prescription drugs for off-label use. FDA-approved drugs may not be marketed for anything other than their approved purpose, although doctors and physicians are able to prescribe the drugs for alternative uses. Four whistleblower complaints were acknowledged in the case.

Click here to read the entire article, Cephalon Civil Settlement and Criminal Fine, America’s Largest Biotechnology Medicaid Fraud Case

Monday, September 29, 2008

NJ Hospital Pays to Settle in Qui Tam Lawsuit for Medicare Fraud

Cooper University Hospital has agreed to settle a whistleblower lawsuit and pay $3.85 million to the federal government. According to the qui tam case, Cooper inflated its Medicare claims to defraud the program and increase revenues. From 2001 to 2003 the Camden, NJ hospital allegedly submitted Medicare reimbursement claims that inflated its actual treatment costs so that it qualified for outlier payments. Although the hospital will pay the hefty sum, they have admitted no wrongdoing.

Click here to read the full article, New Jersey Hospital Pays $3.85 Million to Settle Whistleblower Lawsuit

Friday, September 26, 2008

Whislteblower Begins Trial Against Insurance Group, Alledgedly Defrauding Federal Government

A trail began on Monday in federal court in Boston following a qui tam lawsuit brought against insurance giant Unum Group by a whistleblower on behalf of the federal government. The suit alleges the company knowingly dumped tens of thousands of disability claims onto the Social Security system, costing the government millions of dollars. “Our lawsuit exposes a practice that creates additional burden on an already overwhelmed Social Security program and also hurts taxpayers”, said the whistleblower’s representation.

Click here to read the full article, Trial against Unum Over Handling of Disability Insurance Claims Opens Today

Wednesday, September 24, 2008

New Whistleblower Program Approved by Oakland City Council

The city of Oakland approved a $250,000 fund for a new whistleblower protection program. According to the proponents, it will be used as a tool to regain public faith in city government after a top official was fired after allegations of nepotism and interfering with police investigations. The whistleblower program is set to prevent managers from retaliating against employees who register complaints and would punish mangers if there is evidence of employee retaliation. The city council is hoping the investment will pay itself back by, “rooting out not only ethical abuse but also financial waste at City Hall.”

Click here to read more about the Oakland City Council’s new whistleblower protection program.

Tuesday, September 23, 2008

Whistleblower Claims Stress Should be the Basis of Law Suit Against Co-Worker

A state judge ruled that a whistleblower’s history of anxiety can’t, “preclude him from claiming he suffered distress”, after he blew the whistle on a co-worker’s secret bank account, hidden from the state. In the whistleblower suit, Joe Potena claims the Board of Public Utilities fiscal chief hid a Clean Energy account with more than $80 million in ratepayer funds without Treasury Department notice. Potena claims he suffered distress afterwards and the case will determine whether the officer accused of causing the stress, director of the Office of Clean Energy Michael Winka, can be sued personally.

Click here to read the full article, BPU whistleblower can press distress claim, judge rules.

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