Articles Tagged with False Claims Act Case

prescription drugKmart Corporation, a wholly owned subsidiary of Sears Holdings Corporation (SHC), has agreed to pay $32.3 million to the United States to settle allegations that in-store pharmacies in Kmart stores failed to report discounted prescription drug prices to Medicare Part D, Medicaid, and TRICARE.

The False Claims Act lawsuit, which was filed in 2008 by James Garbe, alleged that Kmart pharmacies offered discounted generic drug prices to cash-paying customers through various club programs but knowingly failed to disclose those prices when reporting to federal health programs its usual and customary prices, which are typically used by those programs to establish reimbursement rates.

“Pharmacies that are not fully transparent about drug pricing can cause federal health programs to overpay for prescription drugs.” said Acting Assistant Attorney General Chad A. Readler for the Department’s Civil Division. “This settlement should put pharmacies on notice that there will be consequences if they attempt to improperly increase payments from taxpayer-funded health programs by masking the true prices that they charge the general public for the same drugs.”

The Department of Justice is collecting a $98.5 million settlement from Oracle, after PeopleSoft was found guilty of hiking up its prices for government contracts from 1997 until 2005. Whistleblower James A. Hicks, a former PeopleSoft employee, will get $17.73 million for his role in outing his company.

The lawsuit alleged that PeopleSoft failed to disclose the true nature of its multiple product discounting practice, a program that afforded buyers incrementally steeper discounts off list prices or software products based on the number of products purchased at one time. As a result, says the DOJ, the government overpaid for software and related maintenance.

GSA Inspector General Brian D. Miller joined the government dog pile. “GSA’s MAS contracting program – with sales of well over $30 billion in the last fiscal year – depends on vendors’ honesty in negotiations.

Retired cardiologist Harry Fry will get $23.5 million from Christ Hospital as part of a $110 million settlement of a whistleblower suit he filed in 2003..Fry charged that the hospital was improperly assigning panel time in its coveted Heart Station based on how much money those doctors generated for the hospital by referring patients.Department.The Justice Department joined Fry’s suit in 2008 and will collect $108 million before paying Fry. Whistleblowers generally get between 15 percent and 25 percent of the total settlement. The deal includes $2 million to help pay Fry’s legal fees.In one year, profits generated by Ohio Heart doctors totaled more than $25 million, the government said.Patients who arrived at the hospital without a specific cardiologist were sent to the Heart Station, getting the test from the assigned doctor. Since that test could lead to lucrative treatments later, the slots were highly coveted.