Articles Tagged with Corporate Whistleblower

Australia whistleblower lawsThose looking to report corruption, fraud, tax evasion, and other forms of misconduct in the corporate world can finally get the protection they deserve as new whistleblower laws in Australia clear federal parliament.

Corporate whistleblower laws introduced in late 2017 have managed to pass the lower house in early 2019. These laws put into place offer greater protection for anyone wishing to voice concerns about fraudulent activities within a division of the corporate world.

Corporate crime is an illegal act that is committed by a company or business with the goal of giving the company a boost or advantage they normally would be unable to receive. Examples of this are all over the world and are committed by even some of the best-known brands. Many in the U.S. may even recall back in 2014 when Rite Aid, one of the largest drug stores, was required to pay almost 3 billion for violating the False Claims Act by allegedly using gift cards to sway those on Medicare and Medicaid to switch their prescriptions to their pharmacies. This would be considered an act of bribery, and one of the many types of corporate crime. Corporate crime has cost many countries a considerable amount, and so whistleblowers, those who have set out to inform others about illicit activity, are one of the best defenses we have to fight against this type of crime.

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.