New York Employment Lawyer Blog

St. Jude Medical Inc. ("St. Jude") recently agreed to a $16 million settlement for allegations that it was paying physicians and hospitals kickbacks for using its own products even when use of its own products may not have been in the patients' best interests. St. Jude is the world's second biggest maker of heart rhythm devices with sales of $4.68 billion in 2009. Charles Donigian ("Donigian")originally filed the qui tam whistleblower lawsuit, before the government's intervention, under the False Claims Act and will get $2.64 million of the settlement. Our Employee Whistleblower Attorneys have assisted many clients with whistleblowing and anti-kickback cases. Call (800) 893-9645 if you have witnessed any fraud in your workplace.

Donigian is getting his share of the government's settlement with St. Jude under the qui tam provision of the False Claims Act which allows a private individual who has knowledge of fraud being committed against the government to bring an action on behalf of the government. If fraud is proven, the defendant is generally liable for 3 times the damages that the government sustained because of the fraud. The False Claims Act allows the whistleblower to share in the government's recovery which can be anywhere between 10 - 30% of the total recovery. In order to share in the recovery, you must be the first person to bring the case to the government's attention.

Donigian was a technical service specialist employee at St. Jude who observed the kickbacks and inducements. He was involved with the marketing of medical devices and managing paperwork for patients involved in the alleged fake research. He had detailed knowledge that St. Jude paid doctors about $2,000 a patient to induce them to prescribe its own products, including using its own pacemakers and defibrillators. The doctors then submitted reimbursement claims to Medicare and other federal programs.

St. Jude paid the doctors in the form of payments for research study. Donigian's complaint alleged that the payments were kickbacks used to increase St. Jude's sales of its devices over its competitors and not really for any real post market research. St. Jude also gave the doctors tickets to sporting events, gifts and other benefits.

Fraud and false claims against the government also amount to fraud against every taxpayer in this country. If you observe fraud being committed against the government, keep in mind that your taxpayer dollars are being stolen. On its own, the government can't possibly uncover every fraudulent act being committed against it. It is only with the help of employees with honor and the courage, can the government learn of and stop fraudulent practices. Furthermore, the monetary reward of exposing fraud can amount to millions.

Continue reading "Legal Whistleblowing Attorney Update: Employee Whistleblower Exposes Health Care Fraud Under False Claims Act and Anti-Kickback Act" »

GlaxoSmithKline ("Glaxo"), one of the world's major research based pharmaceutical and healthcare companies, recently agreed to pay $750 million to settle civil and criminal charges for selling adulterated products to Medicaid and other government health plans in a qui tam whistleblower lawsuit. The suit was originally filed in 2001 by the government, on behalf of Cherl Eckard, under the False Claims Act for violations of government manufacturing standards at Glaxo's plant in Cidra, Puerto Rico. At the time, the plant in Cidra was Glaxo's number one factory in the world, making over 20 products worth over $5.5 billion annually. Cheryl Eckard, the employee whistleblower who brought the violations to the government's attention, will receive about $96 million of the settlement. Our Employee Whistleblower Attorneys have assisted many clients with whistleblowing and retaliation cases. Call today (800) 893-9645 if you have witnessed any fraud in your workplace.

As an employee whistleblower, Eckard is receiving her share under the qui tam provision of the False Claims Act which allows a private citizen with knowledge of fraud against the government to bring a lawsuit on behalf of the government and recover a portion of any money that the government recovers. The key to this provision is that you must be the first person to bring the case to the government's attention and not publicize or advertise it until the government decides to prosecute the claim. In other words, you must not take your story to the local TV station.

In 2002, FDA investigators cited the plant for quality control problems. Thereafter, while working at Glaxo as a global quality assurance manager, Eckard was in charge of remedying manufacturing violations cited by the FDA. However, she discovered that manufacturing and quality testing violations far exceeded those cited by the FDA. For example, she found that Glaxo marketed Bactroban ointment, a topical antibiotic used to treat skin infections in babies, that was contaminated; Kytril injection, an anti-nausea drug used by cancer patients, that was not sterile; Paxil CR tablets that were missing an active ingredient; Avandamet tablets that were the wrong potency.

Eckard complained to the company and even advised them to close down the plant. She submitted a detailed report to Glaxo's compliance department, who felt her report was unsubstantiated. Shortly thereafter, Glaxo subsequently fired her without correcting the problems.

According to Taxpayers Against Fraud, Eckard's share of $96 million is the highest amount ever paid to a single whistleblower under the False Claims Act. This case represents a major victory to employees with the integrity and courage to expose fraud and wrongdoing against not just the government but against consumers who use their products. Not only did Eckard's actions save lives and expose fraud, but she was financially rewarded for speaking the truth. The qui tam provision of the whistleblower statute not applies to fraud in pharmaceutical companies, but also applies to fraud against the government in other industries, including tax, securities, commodities and health care.

Continue reading "Qui Tam Employee Whistleblower and Retaliation Lawsuit Against GlaxoSmithKline Yields Record High Payout under the False Claims Act" »