Whistleblower Lawyer & Attorney : LaBovick Law Firm, Florida : Federal False Claims Act, Qui Tam

Bristol-Myers Squibb Company (BMS) and its wholly owned subsidiary, Apothecon, Inc., have agreed to pay over $515 million to settle a qui tam fraud suit and other civil allegations involving their drug marketing and pricing practices, According to United States Attorney Michael J. Sullivan.

This was a collaboration of seven qui tam actions brought under the False Claims Act. Those actions include the following cases:  United States ex rel. Richardson v. Bristol Myers Squibb, Civil Action No. 06-11821-NG (D. Mass.); United States ex rel. Piacentile v. Bristol-Myers Squibb Co., Civil Action No. 05-10196-MLW (D. Mass.); United States ex rel. Forden v. Bristol-Myers Squibb Co., Civil Action No. 04-11216 -RGS (D. Mass.); United States ex rel. Cokus v. Bristol Myers Squibb, Civil Action No. 01-11627-RGS (D. Mass.); United States ex rel. Barlow v. Bristol-Myers Squibb, Civil Action No. 04-11540-MLW (D. Mass.); United States ex rel. Ven-A-Care of the Florida Keys, et al. v. Apothecon, et al., Civil Action No. 00-10698-MEL (D. Mass.); and United States ex rel. Ven-A-Care of the Florida Keys, Inc. v. Bristol Myers Squibb Co., Civil Action No. 95-1354 (S.D. Fla.).

The settlement was by no means the effort of one person, but the joint efforts of several offices and individuals including: the Boston offices of the Office of Inspector General for the Department of Health and Human Services, the Federal Bureau of Investigation, and the Food and Drug Administration's Office of Criminal Investigations, along with Department of Justice Trial Attorney Andy Mao of the Fraud Section of the Civil Division, District of Massachusetts Assistant U.S. Attorneys Gregg Shapiro and Susan Poswistilo, and Southern District of Florida Assistant U.S. Attorney Mark Lavine.

The National Association of Medicaid Fraud Control Units participated in the negotiation of the settlement, and the Corporate Integrity Agreement was negotiated by Mary Riordan of the Office of Inspector General at the Department of Health and Human Services.

Cheers to everyone involved in making this huge settlement possible. And not to forget the brave whistleblowers who risked a lot to come forward.  They will share $50 million of the settlement for their bravery and participation. A relator can receive anywhere from 15 percent to 30 percent in a successful qui tam claim depending upon the government's involvement.

Click here to read more about this Bristol Myers Squibb Settlement from the DOJ and Bristol Myers Squibb.

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I came across an interesting post today on the blog site of Eric Turkewitz, Esq. (author of newyorkpersonalinjuryattorneyblog) on the ban of contingency fees for government attorneys. Although it is a blog dedicated to Personal Injury , Attorney Turkewitz raised some valid points on justice for taxpayers. He stated that " any government contract is subject to potential problems, a subject often seen with military and construction contracts. At least with contingency fees the taxpayers won't have to lay out any money, and recovery will only come if the suit is successful. This will cost the taxpayers in the long run, with higher expenses and lower recoveries."

President Bush's  Executive Order on contingency fees legal and expert witness services provided to or on behalf of the United States, really gives us food for thought. Whose interest are they looking out for? The public or someone else? Yes, the emphasis appears to be on protecting the American taxpayer, but does it have some underlying hidden agenda? Only time will tell.

The order adresses contingency fee attorneys, but it does not put any caps on private counsel being paid at an hourly rate. Maybe because, typically these attorneys are being paid by large corporations instead of the average taxpayer. The order should address both sides of the issue, not punish one and completely avoid the other. Time will tell if this proves to be helpful to the average taxpayer. I am not holding my breath.

Let's hope this new Executive Order does not hinder the process for whistleblowers and success in the prosecution of qui tam fraud.

Click Here to read the Executive Order that was signed last week, May 16, 2007.

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