Recent notable FCA cases involving participants in the health care industry include the following:

Manufacturers

  • In July 2011, Medco and AstraZeneca received joint DOJ subpoenas related to the drugs Prilosec and Nexium. An FCA lawsuit brought by a former Medco executive is ongoing.
  • In June 2011, UCB, a Belgian pharmaceutical company, agreed to pay $34 million to settle an FCA suit alleging off-label promotion of the epilepsy drug Keppra for use for headaches and mood control.  

Providers

  • In July 2011, the U.S. elected to intervene in a lawsuit against Nurses' Registry and Home Health Corporation. The complaint alleges that the company exaggerated the medical conditions and needs of its patients in order to qualify for Medicare claims.
  • In May 2011, Quest Diagnostics, the largest provider of medical lab services in California, agreed to pay $241 million to settle a whistleblower suit that alleged that it had overcharged the state Medi-Cal program and that it had paid illegal kickbacks to doctors, hospitals, and clinics in exchange for referrals. It is the largest settlement yet under the California False Claims Act.
  • Also in May 2011, a federal judge in Tennessee granted the government's motion for summary judgment and ordered Fresenius Medical Care AG, the largest provider of kidney dialysis, to pay $82.6 million in damages (trebled damages of $38.9 million and statutory penalties of $43.7 million). The company has announced it will appeal.