Over $3 Billion in Fraud Recoveries Under the False Claims Act in FY 2010-Whistleblowers

Over $3 Billion in Fraud Recoveries Under the False Claims Act in FY 2010

FROM Taxpayers Against Fraud Education Fund Washington, D.C. WWW.TAF.ORG October 25, 2010

Anti-Fraud Law Is Effective and Efficient

Taxpayers Against Fraud calculates the U.S. Department of Justice recovered over $3.1 billion of America's stolen money in Fiscal Year 2010 thanks to whistleblowers and the federal False Claims Act.

More than 80 percent of all successful False Claims Act recoveries are brought to the government by whistleblowers and their lawyers, making the law the most important tool the U.S. Government has in the war against fraud.

The False Claims Act provides for triple damages plus statutory fines of up to $11,000 per false claim. "

"Qui Tam Whistleblower Provisions

The False Claims Act contains qui tam, or whistleblower, provisions. Qui tam is a unique mechanism in the law that allows citizens with evidence of fraud against government contracts and programs to sue, on behalf of the government, in order to recover the stolen funds. In compensation for the risk and effort of filing a qui tam case, the citizen whistleblower or "relator" may be awarded a portion of the funds recovered, typically between 15 and 25 percent. A qui tam suit initially remains under seal for at least 60 days during which the Department of Justice can investigate and decide whether to join the action."

"Whistleblowers that bring evidence of fraud to the U.S. Government are eligible for awards of 15 to 30 percent of the total amount recovered under the Act."

About the Top Ten Cases:.

All of the top ten federal False Claims Act settlements in FY 2010 involved health care, with eight involving fraud committed by pharmaceutical companies.


Allergan
$600 million($225 million to resolve civil allegations and a $375 million criminal fine.)
9/1/2010
Off-label marketing practices involving Botox

AstraZeneca
$520 million
4/27/2010
Illegally marketed the anti-psychotic drug Seroquel

Novartis Pharmaceuticals
$422.5 million($237.5 million to resolve civil allegations and a $185 million criminal fine)
9/30/2010
Unapproved promotion of Trileptal

Forest Laboratories
$313 million($149 million to resolve civil claims, a $150 million criminal penalty, and $14 million in forfeiture).
9/15/2010
Marketed Levothroid without FDA approval and unlawfully promoted Celexa and Lexapro for pediatric use

Elan Corporation
$203.5 million
7/15/2010
Improperly sold and marketed Zonegran

Teva Pharmaceuticals
$169 million
7/26/2010
Inflated prices reported to Medicaid
WellCare Health Plans
$137.5 million
8/9/2010
Defrauded Medicare and Medicaid programs in several states

Mylan, AstraZeneca, and Ortho-McNeil
$124 million
10/19/2009
Companies improperly classified certain drugs to evade rebate obligations

Omnicare and IVAX Pharmaceuticals
$112 million
11/3/2009
Omnicare engaged in kickback schemes with several parties, including IVAX

Health Alliance of Greater Cincinnati and Christ Hospital
$108 million
5/21/2010
Kickbacks to doctors in exchange for referring cardiac patients hospital