Forest Laboratories Income Slides with $170 Million to Go Towards False Claims Investigation

“Forest Laboratories set aside $170 million related to a Justice Department investigation into its marketing and promotion of two antidepressants in the fiscal fourth quarter, when net income slid 46 percent to $92.8 million compared with last year’s fourth quarter.” The case is being led by the U.S. Attorney’s Office for the District of Massachusetts….

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Hurricane Katrina Contractor Settles with U.S. Government for $4 Million

A Virginia based disaster relief company and its partners will pay the U.S. government $4 million to settle a False Claims complaint alleging the company accepted payment for work which was not completely performed based on a contract with the Department of Homeland Security. The company, Lighthouse Disaster Relief and its partners Gary Heldreth and…

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Alta Colleges Pay U.S. $7 Million for False Claims; Initial Suit by Unnamed Whisltblowers

Alta Colleges Inc., the parent company of Westwood College in Fort Worth, Texas, will pay the U.S. government $7 million for allegedly submitting false claims for federal student aid funds.  Alta’s Texas colleges were accused of misrepresenting compliance with professional licensing and state job-placement reporting requirements. The federal suit was initially filed by unnamed whistleblowers…

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Government Wins $128 Million in Qui Tam Suit Against NetApp

The whistle has been blown on a General Services Administration (GSA) contractor who will now pay the U.S. government $128 million for allegedly failing to offer, “its best commercial pricing on information technology goods and services.” A lawsuit was filed by former Network Appliance (NetApp, Inc.) employee, Igor Kapuscinski, who’s complaint led to the investigation….

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Largest Qui Tam Settlement Paid for Defective Satellite Components

The largest settlement ever paid by a defense contractor took place April 2, in which TRW Inc., now owned by Northrop Grumman, paid the U.S. government $325 million in a qui tam lawsuit. The lawsuit alleged that TRW sold components known as “heterojunction bipolar transistors, “ used in intelligence-gathering satellites, which had known defects and…

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$40 Million Qui Tam Settlement Between Healthways and U.S. Government

Healthways has agreed to a $40 million settlement with the U.S. Government resulting from a qui tam lawsuit brought by a former employee. The company was accused of paying doctors to refer patients to its Diabetes Treatment Centers. The settlement is, “not an admission of wrongdoing”, according to CEO Ben Leedle. Healthways concluded that, “the…

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New Whistleblower Lawsuit Against Amgen, Inc.

A whistleblower has filed a lawsuit against the biotechnology company Amgen, Inc. for allegedly marketing the drugs Enbrel and Aranesp for illegal off-label use. The drugs are approved to treat rheumatoid arthritis and anemia respectively. Although physicians are allowed to prescribe medications for off-label use, it is illegal for drug manufacturers to market drugs for…

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Drug Company Targeted for Illegal Marketing of Celexa and Lexapro

A complaint against a New York pharmaceutical company was unsealed last Wednesday for allegedly marketing the drugs Celexa and Lexapro for unapproved pediatric use and for paying doctors to prescribe the drug through illegal kickbacks. Forest Laboratories Inc. is charged with influencing doctors with cash payments disguised as grants. The company was prohibited from promoting…

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