Articles Posted in Corporate whistleblower

GlaxoSmithKline, one of the largest pharma companies in the world, is investigating whistleblower allegations that its Irag subsidiary may have hired government employed doctors and pharmacists in the country, as paid sales reps to boost profits from sales. Continue reading

Although much has been written about the IRS whistleblower program which last year saw a whistleblower collect $104 million in rewards for reporting tax evaders, not much has been mentioned about whistleblowers who report companies that purposely do not pay their sales taxes. Most states have sales taxes on goods sold or exchanged in those states. The amount varies from 5-7% but companies selling products are required to pay sales taxes in those states with such laws and where the transaction occurs in those states. Even though the laws are clear, alot of companies, especially those in offices in various states, try to evade the taxes by just not paying them. In addition, even in those states that do not have actual whistleblower laws on the books, whistleblowers with information about sales tax fraud can usually negotiate a reward of a significant percentage of the moneys recovered by the states. It usually ranges from 15-35% of the moneys collected. It helps to have an experienced lawyer. The information has to be original and generally the amounts of sales tax fraud must be substantial for the states to be interested. It also helps to have documentary support for your allegations in the form of invoices or other documents showing the sales. There have been some very large cases. In one case pending in New York State, Sprint has been charged with seeking to dodge over $300 million in sales taxes. With interest and penalties, that amount could run the company in excess of $700 million and the whistleblower could receive up to $200 million, which would be the single largest whistleblower award relating to tax fraud ever rendered. If you are aware of corporate tax fraud, contact attorney Jeffrey Newman for a free consultation. Jeffrey Newman represents whistleblowers. Jeffrey.Newman1@gmail.com

A Texas jury has ordered two subsidiaries of the pharma company Actavis to pay $170 million for overcharging the Texas Medicaid program. The whistleblower in this case, is a corporation called Ven-A-Care which stands to collect over $400 million for blowing the whistle on overpricing of certain drugs. Ven-A-Care is a small Florida independent pharmacy specializing in in-home intravenous treatment, especially for AIDS. In the 1990’2. it began to receive reimbursements from Medicare in the hundreds of dollars for drugs it had purchased from manufacturers for only $50. Medicare explained that the AWP book price. Ven-A-Care’s executives decided to file a whistleblower action against 20 pharma companies under the False Claims Act. Since then, the government joined the suit and a number of cases have settled, yielding Ven-A -Care rewards of close to $400 million. In this instance, a company assisted the government in recognizing wrongdoing and also benefitted itself through the reward program.