3 Most Famous False Claims Act Cases

November 30, 2022

In 2021 alone the Justice Department obtained over $5.6 billion dollars in False Claims Act settlements and judgments. These high-dollar recoveries often include companies with products that most of us are familiar with. Let’s take a look at three of the most famous False Claims Act settlements and what the company was required to pay as a result of their fraud.


What is the False Claims Act?

If you suspect a company or employee of illegally stealing from the government it is vital to consider your role as a whistleblower. This is where the False Claims Act comes in. Both State and Federal governmental agencies have a broad power to investigate and try companies and businesses when they defraud a public entity or program. However, a key component of many of these cases is an insider stepping up to seek justice.

 

Coming forward and accusing a private company of being complicit in misconduct is not something that comes easily. However, this is incentivized and punishment from that corrupt company is illegal. You need however a False Claims attorney to help guide you through the system.



GlaxoSmithKline

GlaxoSmithKline, the well-known pharmaceutical company, paid out a whopping $3 Billion dollar settlement in 2012 for pharmaceutical fraud. The company pled guilty to two counts of misbranded drugs into interstate commerce and one count of failing to report safety data about the drug Avandia to the FDA. GlaxoSmithKline paid $1 billion for their criminal charges and another $2 billion dollars to resolve their civil liabilities with the federal government.



Pfizer

Pfizer, the drug giant and now covid vaccine provider, settled with the Department of Justice in 2009 for $2.3 billion dollars. Pfizer was illegally promoting certain pharmaceutical products and labeled the drug, Bextra, for uses not approved by the FDA. The 2.3 billion dollar settlement covered the criminal and civil liabilities of the company.



A South Carolina Judgement for Corruption

More recently and closer to home, the Department of Justice obtained a $140 Million judgment against South Carolina Pain Management Clinics, Drug Testing Laboratories, and a Substance Abuse Counseling Center. Chiropractor, Daniel McCollum, owned or operated all of the facilities involved and was providing illegal financial incentives to providers to induce their referrals of urine drug tests. This practice specifically violates the Stark Law and the Anti-Kickback Statute. Both laws are intended to prevent financial incentives for improperly influencing medical decision-making.

 

Former employees of pain management clinics owned or operated by Daniel McCollum brought the information to the Department of Justice under the False Claims Act. A settlement, in this case, was reached in September of 2021.


Our Firm Can Help You - South Carolina Whistleblower Representation

If you suspect a company or employee of illegally stealing from the government, both state and federal, it is vital to consider your role as a whistleblower and bring this information forward. With experience representing whistleblowers and as a former US Attorney, Peter McCoy, is the attorney you representing you and your claims. Contact us today at 843-459-8835 for a consultation if you believe you have a case.

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