Thursday, January 12, 2012

$9 billion in False Claims Act recoveries in FY 2012 predicted

Taxpayers Against Fraud is predicting more than $9 billion in False Claims Act recoveries in FY 2012.  “The bottom line – $9 billion in recoveries – counting civil, state and criminal fines – is within the realm of possible for FY 2012,” said Patrick Burns of Taxpayers Against Fraud.

Among the big cases queued up or already settled:
  • Merck: The Vioxx off-label marketing fraud has been settled for $950 million.
  • GlaxoSmithKline: A series of drug frauds is said to be settled in principle for $3 billion.
  • Abbott: The company has reserved $1.5 billion to settle litigation associated with the illegal marketing of Depakote.
  • Amgen: The company has reserved $780 to settle litigation associated with the illegal marketing of Aranesp.
  • Oracle: The company has settled a GSA price-gouging case for $200 million.
  • NYC: New York City will pay $70 million for Medicare billing fraud.
  • LHC Groups, a home health care provider, will pay $65 million for billing fraud.
  • Pfizer: The company is expected to either go to trial or settle a case dealing with the illegal marketing of Protonix. The minimum recovery under either scenario is expected to be in excess of $500 million.
  • Ranbaxy: A settlement in excess of $400 million is expected for adulteration of HIV drugs.
  • Sandoz (Novartis): The company has agreed to pay $150 million for Average Wholesale Price fraud involving a series of drugs.
  • Maxim: The company has agreed to pay $150 million for Medicaid home health care fraud.
  • Johnson & Johnson: The company has agreed to settle a criminal charge related to illegal marketing of Risperdal, and a civil settlement in excess of $1 billion is expected.
  • Agility/Public Warehouse. The Kuwaiti-based defense contractor is expected to settle a price-gouging case for a sum in excess of $500 million.
  • WellCare Health Plans: The company has reached a preliminary deal with DoJ for a sum in excess of $137 million, to settle a case involving billing for newborn health care services.
  • Medtronic: The company has agreed to pay over $23 million for fraud related to cardiac defibrillators and pacemakers.

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