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Davis Levin Livingston Firm Blog »
October 24, 2011
$12 billion Recovered through Pharmaceutical Fraud Qui Tam Litigation
The kinds of pharmaceutical fraud that Hawaii Qui Tam lawyers come across can include off-label marketing of drugs, awarding kickbacks, overpricing of drugs, submission of false or misleading data to the Food and Drug Administration before approval of a drug, and violations of current Good Manufacturing Practices of the Food and Drug Administration. Over the past 15 years, more than $12 billion have been recovered from pharmaceutical companies, mostly through Qui Tam lawsuits filed by whistleblowers. Most of these lawsuits were filed by whistleblowers, including current and former employees. That information comes via a study published in the September issue of the Archives of Internal Medicine. According to the study, between 1996 and 2000, only one health care fraud-related case was prosecuted, resulting in recoveries of $8 million in defrauded money. Both the number of lawsuits filed under the False Claims Act and the amount of recoveries have been steadily increasing over the years. Between 2001 and 2005, the number of lawsuits increased to 15 cases, resulting in recoveries of $3.9 billion. Between 2006 and 2010, there were 15 cases prosecuted, resulting in recoveries of $.1 billion. All these Qui Tam lawsuits were filed under the Federal False Claims Act which allows persons with knowledge of fraud against the government to bring a lawsuit against a company committing fraud. The Federal False Claims Act was passed in order to encourage people to share information about fraud against the government, and to come forward to file a lawsuit against such companies. Qui Tam laws allow these persons, known as whistleblowers, to file lawsuits against a company on behalf of the government and themselves. In case of a recovery, the person bringing the Qui Tam lawsuit is eligible for a portion of the proceeds, usually around 30%.
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[Medical Malpractice ]
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