Pharma companies Endo Pharmaceuticals and Endo Health solutions will pay $192.7 million to resolve criminal and civil charges over their marketing of Lidoderm, a topical patch to relieve pain.
One it is applied, Lidoderm causes a loss of feeling. It is often used with surgery in treatment of emergency heart rhythm problems. It was only approved by the FDA for relief of post herpetic neuralgia. According to Uncle Sam, the companies marketed the product for off label uses. Fraudulent bills were submitted to Medicare and Medicaid which were the false claims.
The case was filed as a whistleblower lawsuit under the False Claims Act. This law allows individuals to file suit against an entity alleged to have submitted false claims for payment to the government. Peggy Ryan, former sales representative and Max Weathersby along with Gursheel Dillon a doctor, filed the suit against Endo. They are expected to receive over $38 million split three ways or $12.8 million each person.
Jeffrey Newman represents whistleblowers