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corporate fraud 123 articles

Anheuser-Busch Pays $6 Million SEC Penalty For ‘Chilling’ Whistleblower

Anheuser-Busch InBev agreed last week to pay a $6 million penalty to settle allegations that it made improper financial arrangements with officials of the Indian government to boost beer sales and then threatened a whistleblower into silence for reporting the illegal activity. The agreement marks the fourth time the U.S. Securities and Exchange Commission (SEC) has penalized a company for muzzling would-be whistleblowers by using strict agreements that bar them from communicating with the SEC and other government officials. An SEC investigation found the Leuven, Belgium-based multinational company used third-party sales promoters to make improper payments to Indian officials with ... Read More

Preparation is key to a successful whistleblower case

Fraud, abuse, mismanagement, and other forms of wrongdoing are all too common in both the private and public sectors of society these days – an unfortunate fact that elevates the role of the whistleblower in the fight against misconduct and corruption. With lawyers seeing more and more potential whistleblower cases pour in, it’s vital that whistleblowers properly document and state their case before taking it to a lawyer for review. After whistleblowers select experienced and competent legal counsel for their False Claims Act case, they should prepare a concise and well documented “pitch.” The Taxpayers Against Fraud (TAF) Education Fund ... Read More

Judge tosses whistleblower allegations against medical device maker

A Massachusetts federal judge rejected a whistleblower’s lawsuit Tuesday against Ireland-based Covidien’s subsidiary ev3 inc., accusing the company of promoting a blood-blocking surgical device for off-label purposes and other misconduct. Former ev3 salesman Jeffrey D’Agostino filed the lawsuit under the qui tam, or whistleblower, provisions of the False Claims Act against ev3, executive salesman Brett Wall, and Vice President of Sales and Global Marketing John Hardin. Mr. D’Agostino sued on behalf of the U.S. government and 26 states. U.S. District Judge Richard Stearns rejected Mr. D’Agostino’s lawsuit citing weak allegations and insufficient evidence. The lawsuit accuses ev3 of submitting false ... Read More

CVS Caremark to pay $6 million to settle whistleblower allegations of Medicaid false claims

Caremark LLC, a pharmacy benefit management giant operated by CVS Caremark Corporation, will pay the U.S. $6 million to settle allegations brought by a whistleblower under the False Claims Act that the company knowingly defrauded federal and state Medicaid programs by failing to reimburse the taxpayer-funded programs for drug expenses that should have been paid by the private insurer. Individuals who are covered by both Medicaid and a private health plan are classified as “dual eligible.” U.S. law mandates that the private insurer, rather than taxpayer-funded government programs, must assume the costs of health care for dual eligible beneficiaries. Should Medicaid erroneously ... Read More

Shire settles whistleblower allegations of improper drug marketing for $56.5 million

Shire Pharmaceuticals has agreed to pay the U.S. $56.5 million to settle two whistleblower lawsuits filed by former employees of the company who alleged the company illegally marketed several drugs for unapproved, off-label purposes and then billed Medicare, Medicaid, and other taxpayer-funded health care programs for them. Dublin, Ireland-based Shire operates in the U.S. out of its facility in Wayne, Penn. The company makes and markets Adderall XR, Vyvanse, and Daytrana, which are approved for the treatment of attention deficit hyperactivity disorder (ADHD), and Pentasa and Lialda, which are approved for the treatment of mild to moderate ulcerative colitis. The ... Read More

Feds widen crackdown on $56-million Medicare fraud scheme in New Orleans

Federal prosecutors have widened their crackdown on a $56-million health care fraud scheme in the New Orleans area, announcing charges against seven more individuals, including two physicians, who allegedly billed Medicare for home health care services that were not medically necessary or were never provided. The U.S. Justice Department announced Thursday that a New Orleans grand jury indicted the seven individuals, bringing the total number involved in the alleged fraud scheme to 13 defendants. The indicted individuals operated six health care companies. Federal prosecutors say the individuals participated in the scheme through these companies, billing Medicare for home health services ... Read More

Whistleblower gets nearly $I million for exposing potentially deadly Army Humvee fraud

A Minnesota whistleblower who warned his employer, M.K. Battery, and the U.S. Defense Department of a battery change in Humvee vehicles that could have deadly consequences for U.S. combat soldiers has won nearly $1 million in a $5.5-million settlement. David McIntosh, 49, worked as a regional sales representative for M.K. Battery when he repeatedly tried and failed to get his superiors to inform the U.S. Army about a battery change that drastically reduced the life expectancy of the power sources controlling gun turrets on the Humvee. With his concerns falling on deaf ears, Mr. McIntosh contacted the Defense Department directly ... Read More

U.S. Attorney General Holder calls for better whistleblower rewards in financial industry

Whistleblowers who help expose fraud and other misconduct in the financial world could earn bigger rewards in the future in exchange for the efforts, if U.S, Attorney General Eric Holder has his way. Threats brewing in the financial industry today have come to resemble some of the dubious greed-driven behaviors that devastated the U.S. economy in 2008 despite the government’s efforts to prevent a similar catastrophe from recurring in the coming years. “We are already witnessing a troubling return to some of the very same profit-driven risk-taking that contributed to the 2008 collapse,” Mr. Holder said in a speech Wednesday ... Read More

Whistleblower lawsuits accusing Merck of mumps vaccine deceptions will proceed to court, judge decides

Two lawsuits accusing Merck & Co. of lying about the efficacy of its mumps vaccines to keep competitors from introducing similar vaccines to the market will be proceed to trial after a federal judge in Pennsylvania refused to dismiss the suits. U.S. District Judge C. Darnell Jones II ruled that one of the lawsuits, filed by a pair of whistleblowers who worked as virologists for Merck, provided enough evidence that the pharmaceutical giant lied about the vaccine’s efficacy to the federal government. The judge also ruled that the other lawsuit, filed by a group of physicians and direct buyers, could ... Read More

Whistleblower lawsuit targets medical companies, professionals for unnecessary spinal surgeries

The U.S. government has intervened in a whistleblower’s False Claims Act lawsuit against a Michigan neurosurgeon, a spinal implant company, two distributors, and the companies’ owners, alleging that the defendants conspired to perform medically unnecessary and excessive surgeries on patients for profit. The Justice Department also said that in addition to taking over the whistleblower lawsuit, it has filed a separate complaint against the same defendants for engaging in an illegal kickback scheme that put profits above patients’ needs. The whistleblower lawsuit was filed under the qui tam provisions of the False Claims Act by Dr. Caty Savitch and Dr. ... Read More