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False Claims Act of 1863
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==Examples== In 2004, the billing groups associated with the University of Washington agreed to pay $35 million to resolve civil claims brought by whistleblower Mark Erickson, a former compliance officer, under the False Claims Act. The settlement, approved by the UW Board of Regents, resolved claims that they systematically overbilled Medicaid and Medicare and that employees destroyed documents to hide the practice. The fraud settlement, the largest against a teaching hospital since the University of Pennsylvania agreed to pay $30 million in 1995, ended a five-year investigation that resulted in guilty pleas from two prominent doctors. The whistleblower was awarded $7.25M.<ref>{{Cite web|url=https://archive.seattletimes.com/archive/?date=20040430&slug=uwmed30|title=$35 million settlement announced in UW billing case | The Seattle Times|website=archive.seattletimes.com|access-date=Jul 23, 2020}}</ref> In 2010, a subsidiary of [[Johnson & Johnson]] agreed to pay over $81 million in civil and criminal penalties to resolve allegations in a FCA suit filed by two whistleblowers.<ref name=TopamaxPR>US Department of Justice Press Release. April 29, 2010 [https://www.justice.gov/opa/pr/2010/April/10-civ-500.html Two Johnson & Johnson Subsidiaries to Pay Over $81 Million to Resolve Allegations of Off-Label Promotion of Topamax]</ref> The suit alleged that Ortho-McNeil-Janssen Pharmaceuticals, Inc. (OMJPI) acted improperly concerning the marketing, promotion and sale of the anti-convulsant drug [[Topamax]]. Specifically, the suit alleged that OMJPI "illegally marketed Topamax by, among other things, promoting the sale and use of Topamax for a variety of psychiatric conditions other than those for which its use was approved by the Food and Drug Administration, (i.e., "[[off-label]]" uses)." It also states that "certain of these uses were not medically accepted indications for which State Medicaid programs provided coverage" and that as a result "OMJPI knowingly caused false or fraudulent claims for Topamax to be submitted to, or caused purchase by, certain federally funded healthcare programs.<ref name=TopamaxPR/> In response to a complaint from whistleblower Jerry H. Brown II, the US Government filed suit against [[Maersk]] for overcharging for shipments to US forces fighting in Iraq and Afghanistan. In a settlement announced on 3 January 2012, the company agreed to pay $31.9 million in fines and interest, but made no admission of wrongdoing. Brown was entitled to $3.6 million of the settlement.<ref>Bob, Egelko for the San Francisco Chronicle January 4, 2012 [http://www.sfgate.com/business/article/Maersk-Line-to-pay-US-31-9-million-in-settlement-2439693.php "$31.9 Million Settlement In Shipping Suit]</ref><ref>US Department of Justice Press Release. Jan 3 2012 [https://www.justice.gov/opa/pr/2012/January/12-civ-002.html USDOJ: Maersk Line to Pay Us $31.9 Million to Resolve False Claims Allegations for Inflated Shipping Costs to Military in Afghanistan and Iraq]</ref> The largest healthcare fraud settlement in history was made by GlaxoSmithKline in 2012 when it paid a total of $3 billion to resolve four qui tam lawsuits brought under the False Claims Act and related criminal charges.<ref name=":3">{{Cite web|url=https://www.justice.gov/opa/pr/glaxosmithkline-plead-guilty-and-pay-3-billion-resolve-fraud-allegations-and-failure-report|title=GlaxoSmithKline to Plead Guilty and Pay $3 Billion to Resolve Fraud Allegations and Failure to Report Safety Data|date=2012-07-02|website=www.justice.gov|language=en|access-date=2020-01-23}}</ref> The claims include allegations Glaxo engaged in off-label marketing and paid kickbacks to doctors to prescribe certain drugs, including Paxil, Wellbutrin and Advair.<ref name=":3" /> In 2013, [[Wyeth|Wyeth Pharmaceuticals Inc]]., a pharmaceutical company acquired by [[Pfizer|Pfizer, Inc]]. in 2009, paid $490.9 million to resolve its criminal and civil liability arising from the unlawful marketing of its drug [[Sirolimus|Rapamune]] for uses that were not FDA-approved and potentially harmful.<ref>{{Cite web|url=https://www.justice.gov/opa/pr/wyeth-pharmaceuticals-agrees-pay-4909-million-marketing-prescription-drug-rapamune-unapproved|title=Wyeth Pharmaceuticals Agrees to Pay $490.9 Million for Marketing the Prescription Drug Rapamune for Unapproved Uses|date=2013-07-30|website=www.justice.gov|language=en|access-date=2019-08-05}}</ref> In 2014, CareFusion paid $40.1 million to settle allegations of violating the False Claims Act by promoting off label use of its products in the case United States ex rel. Kirk v. CareFusion et al., No. 10-2492. The government alleged that [[CareFusion]] promoted the sale of its drug ChloraPrep for uses that were not approved by the [[FDA]].<ref>{{Cite web|url=https://www.justice.gov/opa/pr/carefusion-pay-government-401-million-resolve-allegations-include-more-11-million-kickbacks|title=CareFusion to Pay the Government $40.1 Million to Resolve Allegations That Include More Than $11 Million in Kickbacks to One Doctor|website=www.justice.gov|date=9 January 2014|language=en|access-date=2017-09-06}}</ref> ChloraPrep is the commercial name under which CareFusion produced the drug [[chlorhexidine]], used to clean the skin before surgery. In 2017, this case was called into question and was under review by the [[United States Department of Justice|DOJ]] because the lead attorney for the DOJ serving as Assistant Attorney General in the case, Jeffery Wertkin, was arrested by the FBI on January 31, 2017, for allegedly attempting to sell a copy of a complaint in a secret whistleblower suit that was under seal.<ref>{{Cite web|url=http://www.nationallawjournal.com/id=1202778867156/Whistleblower-Lawyers-Fret-Over-Leaks-After-Akin-Gump-Partners-Arrest|title=Whistleblower Lawyers Fret Over Leaks After Akin Gump Partner's Arrest|website=National Law Journal|access-date=2017-09-06}}</ref><ref>{{Cite web|url=http://fortune.com/2017/02/08/fbi-lawyer-whistleblower/|title=Lawyer Charged for Trying to Sell Secret Tech Whistleblower Case|last=Roberts|first=Jeff John|website=Fortune|access-date=2017-09-06}}</ref> In 2017, bio-pharmaceutical giant [[Celgene|Celgene Corporation]] paid $240 million to settle allegations it sold and marketed its drugs [[Thalidomide|Thalomid]] and [[Lenalidomide|Revlimid]] off-label in ''U.S. ex rel. Brown v. Celgene'', CV 10-03165 (RK) (C.D. Cal.).<ref>{{Cite web|url=https://www.justice.gov/usao-cdca/pr/celgene-agrees-pay-280-million-resolve-fraud-allegations-related-promotion-cancer-drugs|title=Celgene Agrees to Pay $280 Million to Resolve Fraud Allegations Related to Promotion of Cancer Drugs For Uses Not Approved by FDA|date=2017-07-25|website=www.justice.gov|language=en|access-date=2019-08-05}}</ref> In 2021, A South Carolina pain management company was ordered to pay $140 million under the False Claims Act after a judge in U.S. district court found it in default after fraud schemes.<ref>{{Cite web |date=2021-11-22 |title=South Carolina Chiropractor Pleads Guilty and Agrees to $9 Million False Claims Act Consent Judgment |url=https://www.justice.gov/opa/pr/south-carolina-chiropractor-pleads-guilty-and-agrees-9-million-false-claims-act-consent |access-date=2022-07-27 |website=www.justice.gov |language=en}}</ref><ref>{{Cite web |last=Herrington |first=Caitlin |title=Upstate SC pain clinic owes $140M after judge finds it in default after 'fraud schemes' |url=https://www.greenvilleonline.com/story/news/2021/09/09/sc-pain-clinic-ordered-pay-140-million-oaktree-firstchoice-pma-labsource-daniel-mccollum/5683477001/ |access-date=2022-07-27 |website=The Greenville News |language=en-US}}</ref>
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