Whistleblower Law Collaborative Clients' False Claims Act Suit Leads United States And States To Recover Over 13 Million Dollars from Cardinal Health

BOSTON, Jan. 31, 2022 /PRNewswire/ -- The United States and several states settled a federal and state False Claims Act case brought by clients of the Whistleblower Law Collaborative LLC, against Cardinal Health Inc., one of the nation's largest wholesalers of pharmaceutical drugs and products.

Under the settlement, Cardinal Health will pay the United States and the states $13.125 million plus interest to resolve allegations that it induced physician practices to purchase specialty pharmaceutical products from it by paying customers remuneration in advance of the practice making any drug purchases.  This arrangement violates the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b) because it induces physicians to alter their decision-making.  The practices submitted claims for payment to Medicare and Medicaid programs that were tainted by these kickbacks. Cardinal will also enter into a compliance program, called a Corporate Integrity Agreement, with the Department of Health and Human Services Office of Inspector General.

Our clients, concerned by Cardinal's payment of these kickbacks, brought valuable knowledge about the fraud to the attention of the government by filing a qui tam complaint under the False Claims Act in 2019. Together, with our clients, Whistleblower Law Collaborative attorneys worked with government prosecutors at the Department of Justice and the United States Attorney's Office in the District of Massachusetts to help stop to the illegal conduct.

"We are grateful to our attorneys at Whistleblower Law Collaborative and to the government investigators and attorneys, who were able to help and protect a vulnerable patient population from the influence of kickbacks on health care.  We are hopeful this settlement will set a good precedent for the industry."

-Our Clients

We commend the bravery and outstanding efforts of our clients and the government prosecutors. Attorney Suzanne Durrell praised her clients. "Our clients not only recognized the fraud, but because of their knowledge of industry practices, could explain it clearly and persuasively to the government prosecutors." Attorney David W. S. Lieberman stressed the speed and tenacity of government prosecutors Evan Panich and Lindsey Ross. "These prosecutors immediately recognized a complex fraudulent scheme for what it was and quickly moved forward, achieving a significant settlement in under two years."

The Whistleblower Law Collaborative LLC, based in Boston, devotes its practice to representing clients in actions under the federal and state False Claims Acts and other whistleblower programs. Under the False Claims Act, a private citizen who knows of fraud against the government can act as a whistleblower and file a complaint on behalf of the government. If the case is successful, the whistleblower is entitled to a share of the government's recovery.  Among the firm's many successes is the government's $885 million settlement with AmerisourceBergen, another pharmaceutical drug wholesaler, caught repackaging injectable drugs into unapproved pre-filled syringes.

For more information, contact the Whistleblower Law Collaborative LLC at 617.366. 2800

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SOURCE Whistleblower Law Collaborative LLC