Tag Archives: false claims act

Taxpayers Spend Billions Giving Children Antipsychotic Medications

  Can you guess the best-selling class of drugs? It may be that a fifth of Americans suffer gastroesophageal reflux disease at least once a week, over 30% have hypertension, and over a third of U.S. adults have high LDL cholesterol, but the best-selling class of drugs isn’t proton-pump inhibitors for reflux, or angiotensin II receptor antagonists for blood pressure, or statins. It’s anti-psychotics.   The best-selling drug in America is Abilify, the prescribing information for which says it is only approved for:   Use as an add-on treatment to an antidepressant for adults with Major Depressive Disorder who have ... Continue Reading

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Philosophy Explains How Legal Ethics Turn Lawyers Into Liars

I am a fan of the American court system. There is no natural law requiring people to resolve their differences by asking third parties to represent them and advocate on their behalf in front of impartial decision-makers. The folks in classical Athens and Rome thought it was a good idea, the Europeans rediscovered the practice in the Middle Ages, and the adversarial system of law has been consistently practiced by England, and then America, ever since.   Since the classical time, there have always been restrictions on lawyers intended to keep them honest. Most of those "restrictions" have amounted to ... Continue Reading

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The Idiot’s Guide Whistleblowing Under The Dodd-Frank Wall Street Reform Act

If you suspect your employer has violated securities, tax, or government contract laws, you can contact our firm for a free, confidential, no-obligation consultation using this form.   Corporate Counsel reported yesterday: The new federal whistleblower law is proving a hot item for many plaintiff law firms. Attorneys say that tipsters with visions of becoming millionaires are flooding their offices with calls. "In the last three weeks, I've had many, many more whistleblowing calls than I had in the last three years," said Rebecca Katz, a partner at Bernstein Liebhard in New York. Katz is a former senior counsel in ... Continue Reading

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An Associate’s Guide To White Dress Shirts, Ladders, and Bootstraps

Over at the Delaware Corporate and Commercial Litigation Blog, Francis Pileggi highlights one of the many quirks of practice in Delaware: Professor Bainbridge discusses an article here from The Wall Street Journal that quotes a Delaware Superior Court judge in connection with a dress code for those who appear in his court. Most Delaware lawyers know that it is at least an unwritten rule that a "white dress shirt" is expected of lawyers who appear in a Delaware court. Delaware, it must be said, has among the most formal and quaint procedures I've ever seen. Even though, as Pileggi previously pointed ... Continue Reading

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The Difference Between Fraud And Mistake Under The False Claims Act

The False Claim Act envisions a broad definition under 31 U.S.C. § 3729(b) for when a defendant "knowingly" makes a false or fraudulent claim to the federal government: (b) Knowing and Knowingly Defined.— For purposes of this section, the terms “knowing” and “knowingly” mean that a person, with respect to information— (1) has actual knowledge of the information; (2) acts in deliberate ignorance of the truth or falsity of the information; or (3) acts in reckless disregard of the truth or falsity of the information, and no proof of specific intent to defraud is required. The burden of persuasion for proving ... Continue Reading

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False Claims Act Lawsuit Against Oracle For Overcharging On GSA Contracts Unsealed

At Business Week, it seems Oracle isn't living up to its namesake: Oracle Corp., the world’s second- biggest software maker, faces a lawsuit brought by a whistleblower and the U.S. Justice Department claiming it overcharged the government by tens of millions of dollars. As the Complaint summarizes, This lawsuit is based on a scheme by Defendant Oracle Corporation ("Oracle") to defraud the United States by failing to disclose deep discounts Oracle offered to commercial customers when Oracle sold software products to federal government agencies through a General Services Administration Multiple Award Schedule. Oracle's failure to disclose the discounts it offered ... Continue Reading

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More False Claims Act Smoke And Mirrors To Deny Whistleblower Awards

Via the WSJ Law Blog, Amy Kolz at The American Lawyer has a new article about the False Claims Act: "[FCA cases] are a big gamble," says Piacentile's counsel, former Boies, Schiller & Flexner partner David Stone of Stone & Magnanini, who cites cost-benefit analyses and good relationships with prosecutors as essential to his qui tam practice. "That's why you have to know what you're doing. Otherwise you can be in a case for ten years and not get anything." But there is a darker perspective on Joseph Piacentile. Unlike most qui tam relators, he doesn't blow the whistle as an ... Continue Reading

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Who Will Fight For Our Tired, Our Poor, Our Huddled Masses Yearing To Breathe Free?

The New Colossus: Not like the brazen giant of Greek fame, With conquering limbs astride from land to land; Here at our sea-washed, sunset gates shall stand A mighty woman with a torch, whose flame Is the imprisoned lightning, and her name Mother of Exiles. From her beacon-hand Glows world-wide welcome; her mild eyes command The air-bridged harbor that twin cities frame. "Keep, ancient lands, your storied pomp!" cries she With silent lips. "Give me your tired, your poor, Your huddled masses yearning to breathe free, The wretched refuse of your teeming shore. Send these, the homeless, tempest-tossed to me, ... Continue Reading

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Four States Join False Claims Act Whistleblower Suit Over Substandard PVC Pipes

As The Recorder reported, Four states and dozens of California cities and water districts have joined a qui tam lawsuit, unveiled this week, seeking millions of dollars in damages against a company for allegedly supplying customers with substandard PVC pipe. The suit, brought against J-M Manufacturing Co. and its former parent company, Formosa Plastics Corp., alleges that J-M sold PVC pipe that had tensile strength below industry standards, and that the company deceived customers by choosing stronger samples for independent certification of its product. The suit also contends that under the company president, Walter Wang, it "implemented a series of ... Continue Reading

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E.D.Pa. Holds False Claims Act Relator Cannot Toll Statute Of Limitations If Government Did Not Intervene

Another interesting statutory construction case arising from allegations scientists at Cornell University Medical College and Thomas Jefferson University "misrepresented the findings of their DNA research when they applied for National Institute of Health research grants and did not correct the misrepresentations on subsequent progress reports and renewal applications." Problem is, the grants in question were filed back in the 1990s. As Judge Savage recounts, The [False Claims Act] prohibits 'any person from making false or fraudulent claims for payment to the United States.' Graham County Soil & Water Conservation Dist. v. United States ex rel. Wilson, 545 U.S. 409, 411, ... Continue Reading

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