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Justice Department Continues Streak of Huge Recoveries Against Pharmaceutical Industry In False Claims Act Cases

May 18, 2010

By Paul Hastings Professional

The Justice Department is on a roll. In the past several weeks, it settled whistleblower suits under the False Claims Act (FCA) against pharmaceutical companies for nearly $150 million. During that same period, the Department of Justice also settled a [qui tam] action involving a private lender for more than $25 million, and intervened in a separate FCA whistleblower suit in Texas.

Since January 2009, the Department of Justices total recoveries have topped $3 billion in FCA cases. Although no industry that conducts business with the federal government is immune from FCA enforcement, particularly military defense, the pharmaceutical industry has been one of the Department of Justices high priority targets. In fact, approximately $2.3 billion of FCA recoveries since January 2009 have stemmed from cases involving fraud against federal health care programs.

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