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Pharmaceutical and Medical Device Giants Face Scrutiny in False Claims Act Lawsuits

In a series of high-profile cases, pharmaceutical and medical device companies have faced allegations of off-label promotion and kickbacks to medical providers, prompting government investigations and multimillion-dollar settlements.

US WorldMeds: Off-Label Promotion and Kickbacks

US WorldMeds LLC was accused of promoting its injectable products for unapproved uses and paying kickbacks to medical providers in exchange for prescriptions. The company settled a False Claims Act lawsuit in 2019, agreeing to pay millions in damages and penalties.

Medtronic: Off-Label Marketing

Medtronic Inc. faced allegations that it promoted its medical devices for higher-risk uses than approved by the FDA. A former sales representative and engineer brought a False Claims Act lawsuit against the company, which settled the case.

Pfizer: Lipitor Promotion

Pfizer Inc., maker of the blockbuster statin drug Lipitor, was accused of promoting the medication for unapproved uses. An expert physician and scientist brought a False Claims Act lawsuit against the company, which has yet to be resolved.

Hospital Billing Fraud

Several large hospitals were accused of committing Medicare fraud through false claims for “outlier” payments. A health care finance expert brought a False Claims Act lawsuit against the hospitals, resulting in multimillion-dollar damages and penalties.

Center for Diagnostic Imaging: Anti-Kickback Violations

The Center for Diagnostic Imaging was accused of violating anti-kickback laws by paying medical providers to present false claims to the government. Two whistleblowers, including a physician and health care executive, brought a False Claims Act lawsuit against the company, which settled the case.

Sound Inpatient Physicians: Upcoding Fraud

Sound Inpatient Physicians was accused of widespread “upcoding” in support of health care fraud. A former regional vice president brought a False Claims Act lawsuit against the company, resulting in a large settlement and award to the whistleblower.

Enforcing the Anti-Kickback Statute

These cases highlight the importance of enforcing the Anti-Kickback Statute through the False Claims Act, which aims to prevent pharmaceutical and medical device companies from engaging in improper relationships with medical providers.

Dodd-Frank Whistleblower Cases

Hagens Berman has also represented whistleblowers in several Dodd-Frank whistleblower cases, including investigations into investment fraud, stock exchange manipulation, and accounting irregularities. These cases have resulted in significant fines and penalties for the companies involved.

Reporting Fraud or Misconduct

If you have information about potential fraud or misconduct, consider reporting it to us or contacting the SEC or CFTC directly. Our experienced whistleblower attorneys can help guide you through the process and protect your identity.