Jazz Pharmaceticals pays $20 million to settle Federal Suit on Xyrem
Jazz Pharmaceuticals, Inc. and it subsidiary Orphan pharmaceuticals, has agreed to pay $20 million in penalties and victim compensation to resolve criminal and civil investigations surrounding illegal promotion of narcolepsy drug, Xyrem. With this settlement, Jazz Pharmaceuticals settles a $3.75 million Federal False Claims Act case with the government and agrees to pay interest. The active ingredient, GHB is a powerful, fast acting depressant that has been abused as a recreational drug and classified as a "date rape" drug. The company admitted to falsely promoting the Xyrem drug to doctors for unapproved uses such as fatigue, insomnia, chronic pain, weight loss, depression and bipolar disorder, according to the Justice Department.
The brave whistleblower in this case, was a former sales representative that filed a qui tam lawsuit on behalf of the government in 2005. This is a perfect example of how long a whistleblower may have to wait to see results in their qui tam (whistleblower) law suit. This case remained under seal until earlier this month. Therefore, whistleblowers must be patient and follow appropriate steps to ensure their relator's portion of what the government recovers is protected. Having the necessary proof and documentation that is not public knowledge and consulting with a knowledgeable and experienced qui tam attorney are good first steps for a whistleblower. The reward for their patience and bravery can be up to 30% of what the government recovers, depending upon the government's level of involvement in prosecuting the qui tam claim.
Click here to read more on this case from the Justice Department and the WSJ Health Blog
If you are a whistleblower with information on a corporation, defrauding the government and need to discuss your case with an experienced qui tam attorney, contact LaBovick & LaBovick.
The Whistleblower Law Blog is presented as a service of the Private Law Firm, LaBovick & LaBovick, P.A., Civil Justice Prosecutors. LaBovick & LaBovick is a Plaintiff's firm that represents whistleblowers in Florida and throughout the United States in qui tam (False Claims Act) litigation
