Six Qui Tam “Whistleblower Suits” Result in Shire Plc Subsidiaries Paying $350 Million for False Claims in Connection With Illegal Kickbacks and Incentives

Shire Pharmaceuticals LLC and other subsidiaries of Shire plc (Shire) will pay $350 million to settle federal and state False Claims Act allegations that Shire and Advanced BioHealing (ABH) — a company it acquired in 2011 — employed kickbacks and other unlawful methods to induce clinics and physicians to use or overuse its product “Dermagraft,” a…

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SEC to Company: You Can’t Force Whistleblowers to Give Up Awards

The SEC reached an agreement today with a company whose severance agreements included a provision that waived employees’ rights to any whistleblower awards based on their reporting to the SEC or other federal agencies.  The company, Bluelinx Holdings Inc., has agreed to pay a $265,000 penalty, amend all of its severance agreements, and attempt to notify…

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J&J Subsidiary to Pay $18 Million for Marketing Device Off-Label

Johnson & Johnson subsidiary Acclarent Inc. has agreed to pay $18 million to resolve a False Claims Act case alleging that the company illegally marketed its device, the Relieva Stratus MicroFlow Spacer, for unapproved uses.  The FDA had only approved the use of the device, which holds the nasal passages open after surgery, with saline….

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Evercare Hospice to Pay $18 Million for FCA Claims

Evercare Hospice and Palliative Care has agreed to pay $18 million to settle a False Claims Act suit alleging that the company enrolled patients in hospice care that were not terminally ill.  When patients enroll in hospice care, they forgo treatment for their medical conditions and instead receive care designed to make them comfortable in their…

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