Articles Tagged with Settlement

big-pharma-300x196Jazz Pharma, Alexion, and Lundbeck were the subject of SOJ lawsuits asserting kickbacks and committing general violations of Medicare laws. The United States Department of Justice has decided to agree to a settlement of $122.6 million in total from these three alleged Medicare violators.

The drug companies were accused of offering remuneration in hopes of encouraging patients to purchase their medications. They would pay kickbacks, a form of negotiated bribery, to patients of Medicare and Civilian Health and Medical Program (ChampVA) under the guise of charitable organizations that subsidized the co-pays. This is not an uncommon practice, but it is one many law enforcement programs are attempting to discontinue.

The DOJ states that in this case, the companies violated the Federal False Claims Act. This act is a way of imposing liability onto anyone, be it a group or individual, that has been discovered interfering with government-funded programs such as in this case with Medicare. This is one of the government’s main tools in defending against fraudulent acts.

American SuperConducter Inc.A Chinese company, Sinovel Wind Group Co., has been ordered to pay American SuperConducter Inc. (AMSC) $57.5 million after being convicted of multiple charges regarding the theft of proprietary software. This theft resulted in substantial losses for AMSC, including $800 million in revenue and $1 billion in stock market value. Today, the Chinese company has recently made its last installment payment of the agreed-upon settlement, however, the trade theft first began in 2011 in what was expected to be a profitable partnership between the two companies.

Initial Partnership

Originally, AMSC and Sinovel Wind Group Co. worked together in what seemed like a mutually beneficial business partnership. The agreement was that Sinovel Wind Group Co. would produce windmills and purchase $800 million in software from AMSC to control and operate the windmills. However, in 2011, Sinovel Wind Group Co. abruptly ended their agreement and claimed that they no longer needed the software from AMSC to control their windmills.

pure-collection-300x200Pure Collection, a UK fashion retailer, committed customs fraud resulting in the evasion of routine tax duties. A case that was first brought to the attention of authorities in 2014, has finally reached a 900K settlement thanks to the False Claims Act and one brave whistleblower.

Former Employee Blows the Whistle

Andrew Patrick, a former employee of the luxury retailer, blew the whistle on a practice giving the company an unfair advantage over other retailers. The simple practice of “splitting” large packages being shipped to the US into multiple, smaller packages, avoids triggering customs duties. Patrick says he was specifically trained to do this and alleges this was a commonplace company policy between 2010 and 2017.

Orthofix International will pay $30 Million to settle a whistleblower lawsuit alleging a kickback scheme to physicians concerning its spinal surgery products. The company allegedly paid kickbacks to health care providers in order to get them to use the products and the kickbacks to the form of consulting agreements, stock options, gifts, travel, unrestricted grants and entertainment. The complaint listed 67 doctors and medical firms and said most received upto to $6,000 per month. The whistleblower Susan Hutcheson will receive $8 million as her share of the settlement amount.

Jeffrey Newman represents whistleblowers. jeffrey.newman1@gmail.com