DOJ swamped with whistleblower lawsuits
Pharma Compliance Alert, July 9, 2008
More than 500 cases involving potential fraud by healthcare and pharmaceutical companies are part of a backlog in the Department of Justice (DOJ), according to a Washington Post article.
In all, the DOJ has more than 900 whistleblower cases involving alleged fraud by government contractors and healthcare entities. Between 300 and 400 cases have been filed every year since 2001, according to the Post article. DOJ lawyers review cases under seal, a process which can take 14 months. A team of 75 lawyers investigates approximately 100 cases each year. The DOJ rejects approximately 75% of cases, the Post reported.
Merck’s $650 million settlement and Bristol-Myers Squibb’s $515 million settlement are two of the largest false claims settlements. Even bigger cases with more damaging revelations could be on the way, according to the Post.
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