by Nolan and Auerbach on June 18, 2010
Nolan and Auerbach, P.A. Partner Jeb White recently presented to attorneys at the American Bar Association National Institute on False Claims Act Qui Tam Enforcement, “THE FUTURE OF THE FALSE CLAIMS ACT: BACK TO THE FUTURE FOR THE GOVERNMENT’S PRIMARY FRAUD-FIGHTING WEAPON.” In his presentation, he highlighted the key political and legal catalysts for the recent amendments, dissected the resulting statutory language, and discussed the potential ramifications for False Claims Act enforcement. His accompanying paper can be accessed at http://www.whistleblowerfirm.com/about/published-articles/.
For more information about qui tam law and health care fraud, contact Nolan & Auerbach, P.A.
by Nolan and Auerbach on April 30, 2010
In May 2009, the President signed the Fraud Enforcement Recovery Act, sponsored by Senator Chuck Grassley and Senators Patrick Leahy and Ted Kaufman, made major changes to strengthen the federal False Claims Act by removing liability loopholes and addressing statutory confusion. Additional related, though less extensive changes, were made as part of the Patient Protection and Affordable Care Act enacted in March 2010, Grassley is now working to make sure that the recent changes made to the federal False Claims Act are recognized and incorporated by the 14 states that already have OIG-approved state False Claims Acts.
Consistency by a state with the Federal False Claims Act, is a requirement for a large federal incentive afforded to the state, when Medicaid dollars are successfully recovered in a Federal False Claims Act lawsuit. The federal incentive allows states to receive an additional 10% of the Medicaid recoveries if they allow whistleblower/qui tam lawsuits in their state False Claims Acts, as long as the state False Claims Acts afford the same rights to whistleblowers as the federal False Claims Act does.
In an April 28, 2010 press release , Grassley asked the Inspector General for the Department of Health and Human Services and the Attorney General to review existing state False Claims Acts, to make sure they are in compliance with recent changes to the federal False Claims Act; and to issue appropriate guidance for any state interested in the federal incentive.. In addition to the 14 states which have already qualified for this incentive (and are now subject to this review), six states applied for it but did not meet the requirements.
For the full press release, go to: http://www.iowapolitics.com/index.iml?Article=194624. For more information about qui tam law and health care fraud, contact Nolan & Auerbach, PA.
by Nolan and Auerbach on March 26, 2010
On March 24, 2010, Attorney General Eric Holder signed an Order, giving authority to U.S. Attorneys (to include, in effect, Assistant U.S. Attorneys) to issue civil investigative demands under the False Claims Act. CIDs are administrative subpoenas that can cover documents, depositions and interrogatories, that can be filed and served on a company while a qui tam is still under investigation. Up to two days ago, U.S. attorneys were required to obtain approval from the Attorney General for the issuance of a CID-a process that took several months if not longer, discouraging their use amongst assistant U.S. attorneys in qui tam cases. The long-needed delegation of authority stemmed from the Fraud Enforcement and Recovery Act (FERA), signed by President Obama on May 20, 2009, which authorized the Attorney General to delegate his authority to issue civil investigative demands. As a result, the Attorney General signed Order No. 3134-2010 (Jan. 15, 2010) delegating to the Assistant Attorney General for the Civil Division, the Attorney General’s authority to issue CIDs, and permitting that authority to be re-delegated to other Department officials, including United States Attorneys.
For more information about qui tam law and health care fraud, contact Nolan & Auerbach, P.A.
by Nolan and Auerbach on February 22, 2010
Eon Labs Inc. has agreed to pay the United States $3.5 million to resolve False Claims Act allegations relating to the company’s drug Nitroglycerin Sustained Release (SR) capsules, the United States Department of Justice (DOJ) announced Feb. 22, 2010. Eon Labs is a subsidiary of Sandoz Inc., which is in turn a subsidiary of Novartis AG.
In April 1999, the Food & Drug Administration (FDA) determined that the unapproved drug Nitroglycerin SR lacked substantial evidence of effectiveness and published a notice proposing to withdraw approval of the product. The qui tam lawsuit alleged that, after the FDA notice, Nitroglycerin SR no longer was legally eligible for reimbursement by government health care programs such as Medicaid.
The lawsuit alleged that Eon submitted false quarterly reports to the government that misrepresented Nitroglycerin SR’s regulatory status as a Covered Outpatient Drug under the Medicaid program.
The settlement resolves allegations against Eon in a multi-defendant whistleblower action, which remains sealed in part.
For the full release, go to: http://www.justice.gov/opa/pr/2010/February/10-civ-171.html.
For more information about qui tam law and health care fraud, contact Nolan and Auerbach, PA. at http://www.whistleblowerfirm.com.
