Pharmacy Law

/Pharmacy Law

Client Alert – False Claims Settlement Costs DaVita Rx $63.7 Million

Texas-based DaVita Rx (DaVita) has agreed to pay a total of $63.7 million to resolve allegations made in a whistleblower lawsuit together with separate issues raised in a self-disclosure by DaVita. Filed by two former DaVita Rx employees, the whistleblower suit alleged that the company billed federal healthcare programs for prescription medications that were never [...]

Client Alert – Alabama “Pill Mill” Indictments Handed Down – Physician and Three Nurse Practitioners Arrested

A Montgomery, Alabama, physician and three nurse practitioners were arrested yesterday following their indictment by a federal grand jury for their role in the operation of a pill mill run from the offices of Family Practice, a Montgomery-based medical clinic. The arrests follow last week’s guilty plea of Family Practice’s owner, Dr. Gilberto Sanchez, to [...]

Client Alert – Patient Assistance Charity Loses Protection from Kickback Liability Office of Inspector General Revokes Advisory Opinion

In an unprecedented action, the U.S. Department of Health and Human Services Office of Inspector General (OIG) has revoked an Advisory Opinion that protected a patient assistance charity from kickback liability, noting that it had failed “to fully, completely, and accurately disclose all relevant and material facts to OIG...” and had also failed to comply [...]

Client Alert – Eli Lilly, Express Scripts Subsidiary United BioSource and Three Other Companies Named in False Claims Act / Anti-Kickback Whistleblower Suit

A recently unsealed lawsuit in the U.S. District Court for the Eastern District of Texas names Eli Lilly and Company Inc. (Lilly) and United BioSource Corporation (UBC), a subsidiary of pharmacy benefit management giant Express Scripts Inc., among others, as the perpetrators of a multifaceted illicit marketing scheme designed to defraud government health care programs [...]

Client Alert – Medicare Fraud Strike Force Nabs Eight in $100 Million Compounding Scheme

Seven defendants have pleaded guilty to conspiracy to commit health care fraud and, while awaiting sentencing, have watched the government seize a number of expensive toys, including a 1936 Ford Deluxe, a 1964 Chevrolet Corvette convertible, a 1967 Chevrolet Camaro, a 1970 Chevrolet Monte Carlo and a 2008 Lamborghini convertible. Also recovered was a 50’ [...]

Client Alert: FDA Issues Warning to Four Companies Marketing Cannabidiol-Containing Products as Anti-Cancer Treatment

On November 1, 2017, the U.S. Food and Drug Administration issued warning letters to four companies that were illegally marketing and selling products online that the companies misrepresented as having benefits in the prevention or treatment of cancer. The companies – Greenroads Health, Natural Alchemist, That’s Natural! Marketing and Consulting, and Stanley Brothers Social Enterprises [...]

Client Alert – Nation’s Largest For-Profit Hospice Chain Settles False Claims Act Allegations for $75 Million

Chemed Corporation, along with several wholly-owned subsidiaries, including Vitas Hospice Services LLC and Vitas Healthcare Corporation, (collectively “Vitas”) have agreed to settle a government suit and three whistleblower actions, all of which allege that the defendants violated the False Claims Act (FCA) by submitting false claims for hospice services to Medicare.  The $75 million settlement [...]

Client Alert – Last of Sixteen Defendants in Compound Cream Fraud Sentenced in Federal Court

In the fall of 2016, 16 individuals, including several doctors, were charged with racketeering, money laundering, and mail and wire fraud, among other crimes, in a compounded medication scheme that netted the conspirators over $175 million over the course of two years. On October 30, 2017, the last of the conspirators was sentenced for his [...]

Client Alert – Deliberations Begin in Meningitis Outbreak Case

October 24, 2017 - In late June of this year, we discussed the sentencing of Barry Cadden, the owner and head pharmacist at the New England Compounding Center (NECC), for his role in the 2012/2013 meningitis outbreak that sickened hundreds and led to the deaths of 76 people. Cadden had been found guilty by a [...]

Client Alert – Guilty Pleas Continue to Amass in New Jersey State Health Benefits Fraud Investigation

October 12, 2017 - In late summer we issued a client alert describing a healthcare fraud scheme that had hit two New Jersey state health benefits programs for over $25 million by submitting fraudulent prescriptions for compounded medications. At the time of the initial alert, five conspirators had submitted guilty pleas to an assortment of [...]