|By Practice AreaBankruptcyChild CustodyCriminal LawDivorceFamily LawLabor & Employment LawMedical MalpracticePersonal InjuryReal EstateTaxationWills & ProbateMore...||By Life EventsGetting a DivorceWrite a WillBankruptcy, Credit and DebtHome Disaster RecoveryLosing a JobLandlord TenantAutomobile AccidentPrivacy ViolatedCare for an Aging RelativeIdentity TheftHot Topics on Lawyers.comMore...||By LocationCaliforniaFloridaGeorgiaIllinoisMichiganNew JerseyNew YorkOhioPennsylvaniaTexasWashingtonMore...|
|Legal ForumsRegisterSign inBankruptcyBusinessCriminalEmploymentFamilyImmigrationReal EstateMore...||Ask a LawyerAsk a QuestionChat Archives|
Such cases were brought under the False Claims Act, a law covering frauds against the government that includes a provision allowing private citizens to file lawsuits on the government’s behalf. These citizens are then entitled to collect a portion of any fines or penalties collected in their cases.
Overall, the government recovered nearly $5 billion in False Claims Act cases for the fiscal year ended Sept. 30, including $3 billion stemming from health care fraud and $911 million paid by mortgage servicers as part of the $26 billion foreclosure settlement, the Justice Department said.
The previous record for False Claims Act recoveries was $3.2 billion in the prior fiscal year.
“The False Claims Act is, quite simply, the most powerful tool that we have to deter and redress fraud,” Acting Associate Attorney General Tony West said.
The biggest single case for 2012 involved pharmaceutical firm GlaxoSmithKline (GLAXF), which paid $1.5 billion to resolve False Claims Act allegations. The company was accused of promoting drugs for uses other than those approved by the Food and Drug Administration, making false statements about drug safety and underpaying Medicaid rebates. The $1.5 billion payment came as part of a $3 billion settlement concerning the drug maker’s practices.
In the GlaxoSmithKline case, “multiple” whistleblowers received awards totaling $131 million, the Justice Department said. In the foreclosure settlement, six whistleblowers received $46.5 million in total.
Overall, whistleblowers received $439 million in Justice Department cases in the 2012 fiscal year.
To read the full article, visit: CNN Money
The Linesch Firm provides news and opinion articles as a service to our readers. Often these articles come from sources outside of our organization. Where possible, the source is documented within each article as well as a link to the article’s source. For more information about The Linesch Firm, please visit our website: www.LineschFirm.com