SlideShare a Scribd company logo
1 of 8
Download to read offline
GlaxoSmithKline's (GSK) $3 Billion Whistleblower
Settlement Has Paid for One Of America's Most Expensive
Failed Corporate Internal Investigations, Qui Tam
Whistleblowers' Attorneys Say.
GSK, et
al.Civ. Massachusetts Assistant
Attorney General Bob Patten zofran lawsuit settlements led the investigation on behalf of the
states and the National Association of Medicaid Fraud Control Units
("NAMFCU").
Case Caption: United States ex rel. According to Emily Lambert of Kenney 
McCafferty, the Government joined the whistleblowers' case and
filed a Complaint-in-Intervention adopting the whistleblower's
claims. The FCA allows the Government to collect up to three
times the amount it was defrauded, in addition to civil penalties from
$5,500 to $11,000 per false claim.
In successful qui tam whistleblower cases in which the Government
intervenes, whistleblowers are entitled to receive a percentage of qui
tam recoveries, typically 15-to-25 percent, generally known as,
"the relator's share."
Under the terms of the settlement agreement, the Government and the
whistleblowers did not concede that their respective claims are not well
founded. In turn, as is typical in civil agreements, GSK expressly
denied liability, except for those admissions GSK agreed to make in
connection with connection with a criminal Plea Agreement. When the two
Kenney McCafferty-represented whistleblowers reported their
concerns about illegal marketing practices they were witnessing in the
field, GSK's top compliance executive, an attorney who now holds a
similar position with another medical device manufacturer, became
involved in and oversaw the ensuing internal investigation.
Instead of changing the illegal conduct, the Company retaliated
against the whistleblowers and they became the first to file an
off-label marketing qui tam whistleblower Complaint against GSK. Specifically,
according to the agreement, GSK has agreed to plead guilty to criminal
charges that the company misbranded Wellbutrin and Paxil and it failed
to report data relating to clinical experience, along with other data
and information regarding the diabetes drug Avandia to the Food and Drug
Administration ("FDA") in mandatory reports, all in violation
of the Food, Drug and Cosmetic Act ("FDCA").
In addition to paying a $1.042 billion civil settlement to the
federal and state Governments, as part of the Settlement Agreement GSK
agreed to be bound by a Corporate Integrity Agreement ("CIA")
with the Office of Inspector General of the United States Department of
Health and Human Services ("OIG-HHS").
The federal investigation into GSK's marketing practices was
conducted through a collaborative effort of the U.S. His law firm, Kenny McCafferty, P.C., represents
the two
whistleblowers who sparked the nine-year federal probe that ended with
today's $3 billion payment to settle off-label drug marketing
allegations involving nine prescription drugs.
"When our clients were forced out of their marketing positions,
GlaxoSmithKline ('GSK') had proof of illegal off-label
prescription drug marketing. Attorney's Offices for the District of
Massachusetts and the District of Colorado. No.: 11-10398 (D.Mass)
About Kenney McCafferty, P.C.:
Kenney McCafferty, P.C. Kenney McCafferty's qui tam lawsuits have
resulted in cases in which more than $5 billion in civil and criminal
fines and penalties have been recovered for federal and state
Governments, resulting in the payment of hundreds of millions of dollars
in whistleblower rewards.
Contacts: Kenney McCafferty, P.C. For
not-breaking access, as they become available, filed documents can be
accessed via the "GSK" link on the quitam-lawyer.com homepage
"Cases Over $100 Million."
SOURCE Kenney McCafferty, P.C.
COPYRIGHT 2012 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the
copyright holder.
Copyright 2012 Gale, Cengage Learning. As a result,
Advair's portion of taxpayers' recovery represents nearly 70
percent of the Government's total $1.017 billion civil settlement
of our clients' claims, Lambert added.
The nine prescription drugs covered by the settlement included
Advair, Wellbutrin, Paxil, Lamictal, Zofran, Imitrex, Lotronex, Flovent
and Valtrex.
GSK maintained an elaborate illegal marketing regime for the
prescription drugs included in today's settlement, including,
according to filed documents:
* Paying physicians (who could be counted on to influence their
peers) as much as $25,000 for being a GSK "advisory board"
member;
* Enrolling 49,000 physicians and health professionals to be part of
its speakers bureau;
* Identifying physicians in academia to pay to speak on behalf of
one of the company's drugs;
* Creating the PowerPoint "slide kits" that physicians
would use to deliver canned presentations;
* Using an elaborate "FaxBack" system allowing drug
marketing reps to suggest articles related to off-label uses. is the one of the most successful
national law firms specializing in representing qui tam, tax, and SEC
whistleblowers. In at least one case a patient died from a
reaction that the company had evidence could occur;
* Marketing Paxil, the antidepressant, to children under 18 when it
had not been approved for youngsters, and despite GSK's own
clinical trails that had shown that the drug was ineffective for
children and also heightened the risk of suicide or other self-harming
behavior three-fold; and,
* Marketing the antidepressant Wellbutrin as superior to other
antidepressant alternatives due to increased sexual functioning and
weight loss, pushing the drug as the "happy, horny, skinny
drug," to concisely encapsulate GSK's off-label Wellbutrin
marketing campaign.
Physicians are free to prescribe drugs for off-label uses, but
pharmaceutical companies are prohibited from marketing the drugs for
uses that have not been approved by the FDA. Thorpe, et al. Department of
Justice, and the U.S. That led to
the indictment of a GSK associate corporate counsel, said Deming.
Federal charges against the former associate general counsel later were
subsequently dismissed by the court. All rights reserved.
. An ensuing GSK internal
investigation verified their allegations, but the company took no
action, choosing hefty profits over compliance and patient safety,"
said whistleblower attorney Tavy Deming of Kenney McCafferty.
"GSK could have saved hundreds of millions, perhaps a billion
or more dollars of the $3 billion it paid today by following through on
the combined Human Resources /Corporate Compliance investigation they
launched. Our clients properly reported those
marketing misdeeds to management in 2001. Federal laws also prohibit
pharmaceutical companies from paying kickbacks to physicians to induce
prescriptions. v. The
physicians would order these -off-label promotional materials by calling
a toll-free number, and thus not appear to be responding to an illegal
marketing effort by the drug marketing representative;
* Pushing Imitrex, an adult medicine for migraine, for mild
headaches, as well as for use in children, despite the FDA's
rejection of GSK's application for child use due to lack of
efficacy;
* Pushing Lamictal, a drug approved only for partial seizures, in
adults for other diagnoses.
PHILADELPHIA, July 2, 2012 /PRNewswire/ -- GlaxoSmithKline has just
paid for one of the most expensive failed internal investigations in
corporate history, qui tam whistleblower attorney Brian Kenney said
today. When you look at the detail and accuracy of Greg
Thorpe's written complaints distributed to the highest levels of
Glaxo (See 'Document Links' Below) it's almost surreal
that the company took no corrective action. Lauren Stevens, District
of Maryland)
Thorpe and Hamrick provided first-hand revelations of GSK's
pervasive marketing misconduct relating to the nine drugs identified in
Kenney McCafferty's Complaint (See "Document Links"
Below) and Exhibits (See "Document Links" Below) unsealed with
today's settlement. The
original Complaint is one of the first ever filed alleging prescription
drug off-label promotion, Kenney said.
When the whistleblowers' Complaints were still under seal and
being investigated by the government GSK allegedly falsified and
concealed documents in connection with an FDA inquiry into whether GSK
marketed the antidepressant drug Wellbutrin off-label for weight loss, a
central allegation in the whistleblowers' Complaints. When a pharmaceutical company's illegal
marketing
practices cause off-label prescriptions to be written by doctors, and
those prescriptions are paid for by Medicare and Medicaid, the payment
becomes an actionable False Claims Act ("FCA") violation,
according to Kenney, who is a former federal prosecutor.
Under the FCA, qui tam actions allow private citizens with knowledge
of fraud to help the Government recover ill-gotten gains and additional
civil penalties. Instead they ignored evidence of improper marketing and
physician kickbacks. (U.S. (See "Document Links" Below)
Extremely persuasive proof exposing illegal marketing of the asthma
drug Advair for mild asthma was included in the insider evidence that
Thorpe and Hamrick provided to Government investigators, Deming said.
GSK's mild asthma marketing campaign contravened Advair's
approved asthma use, which was limited to moderate and severe forms of
asthma, and a black box warning on the drug's label, yet GSK's
marketing efforts continued unabated into 2010. v. 215-367-4333
Brian Kenney bkenney@kenneymccafferty.com Tavy Deming
tdeming@kenneymccafferty.com.
Additional information about the firm is available at
http://www.quitam-lawyer.com and http://www.tax-fraud.net.
Document Links:
Call the attorneys to obtain at-once copies of these documents. Generally, government-funded
healthcare programs such as
Medicare and Medicaid preclude reimbursement for off-label
prescriptions. Now more than a decade
later, GSK is essentially admitting that Thorpe had been right in
2001," Kenney said. "It's http://www.livescience.com/42890-zofran.html been a very, very, very long
10
years for whistleblowers Thorpe and Blair Hamrick."
GSK's top management was aware of illegal marketing schemes
involving the drugs, according to filed court documents

More Related Content

What's hot

GlaxoSmithKline to plead guilty, pay $3B for illicit promotion of drugs in re...
GlaxoSmithKline to plead guilty, pay $3B for illicit promotion of drugs in re...GlaxoSmithKline to plead guilty, pay $3B for illicit promotion of drugs in re...
GlaxoSmithKline to plead guilty, pay $3B for illicit promotion of drugs in re...dayjksbieyarq
 
Press Release from the U.S. Dept. of Justice on Whistleblower Case Settlement...
Press Release from the U.S. Dept. of Justice on Whistleblower Case Settlement...Press Release from the U.S. Dept. of Justice on Whistleblower Case Settlement...
Press Release from the U.S. Dept. of Justice on Whistleblower Case Settlement...Behn Wyetzner, Chartered
 
MNK Employees vs. Company 9/6/2017 Lawsuit
MNK Employees vs. Company 9/6/2017 LawsuitMNK Employees vs. Company 9/6/2017 Lawsuit
MNK Employees vs. Company 9/6/2017 Lawsuitquoththeraven
 
Antitrust Aspects of Acquiring a Generic Drug Manufacturer
Antitrust Aspects of Acquiring a Generic Drug ManufacturerAntitrust Aspects of Acquiring a Generic Drug Manufacturer
Antitrust Aspects of Acquiring a Generic Drug ManufacturerNexsen Pruet
 
False Claims Act Focus ~ April 2013
False Claims Act Focus ~ April 2013False Claims Act Focus ~ April 2013
False Claims Act Focus ~ April 2013Patton Boggs LLP
 
FisherBroyles Alert - Miami Pharmacies Charged with Submitting $26 Million in...
FisherBroyles Alert - Miami Pharmacies Charged with Submitting $26 Million in...FisherBroyles Alert - Miami Pharmacies Charged with Submitting $26 Million in...
FisherBroyles Alert - Miami Pharmacies Charged with Submitting $26 Million in...Brian Dickerson
 
Marijuana Arrests Drop by 90% After Legalization in Virginia
Marijuana Arrests Drop by 90% After Legalization in VirginiaMarijuana Arrests Drop by 90% After Legalization in Virginia
Marijuana Arrests Drop by 90% After Legalization in VirginiaEvergreen Buzz
 
American Green Rush: Business Opportunity & Risks
American Green Rush: Business Opportunity & RisksAmerican Green Rush: Business Opportunity & Risks
American Green Rush: Business Opportunity & RisksAncella Simoes
 
Obamacare markets debut as early hurdles may slow signups - hCentive news
Obamacare markets debut as early hurdles may slow signups - hCentive newsObamacare markets debut as early hurdles may slow signups - hCentive news
Obamacare markets debut as early hurdles may slow signups - hCentive newsAlisha North
 
Cannabis Corruption in New Mexico - Will the Fed's Jump In?
Cannabis Corruption in New Mexico - Will the Fed's Jump In?Cannabis Corruption in New Mexico - Will the Fed's Jump In?
Cannabis Corruption in New Mexico - Will the Fed's Jump In?Evergreen Buzz
 
Justice Department Recovers Over
Justice Department Recovers OverJustice Department Recovers Over
Justice Department Recovers OverFrancisco Rivas
 
Crime and Policy III: Partnership for Safe Medicines overview for 2021
Crime and Policy III: Partnership for Safe Medicines overview for 2021Crime and Policy III: Partnership for Safe Medicines overview for 2021
Crime and Policy III: Partnership for Safe Medicines overview for 2021The Partnership For Safe Medicines
 
False Claims Act: Claim Types & Legal Resrouces [Complete]
False Claims Act: Claim Types & Legal Resrouces [Complete]False Claims Act: Claim Types & Legal Resrouces [Complete]
False Claims Act: Claim Types & Legal Resrouces [Complete]lawsuitlegal
 
House easily votes to repeal ObamaCare tax on medical equipment
House easily votes to repeal ObamaCare tax on medical equipmentHouse easily votes to repeal ObamaCare tax on medical equipment
House easily votes to repeal ObamaCare tax on medical equipmentbreezyreceptacl0
 
The Cannabis Tech Race Is On - Leafly Sues Florida Over 3rd Party Marijuana O...
The Cannabis Tech Race Is On - Leafly Sues Florida Over 3rd Party Marijuana O...The Cannabis Tech Race Is On - Leafly Sues Florida Over 3rd Party Marijuana O...
The Cannabis Tech Race Is On - Leafly Sues Florida Over 3rd Party Marijuana O...Evergreen Buzz
 
California's marijuana industry under attack
California's marijuana industry under attackCalifornia's marijuana industry under attack
California's marijuana industry under attacknaiveinstinct1140
 
California's marijuana industry under attack
California's marijuana industry under attackCalifornia's marijuana industry under attack
California's marijuana industry under attacknaiveinstinct1140
 

What's hot (20)

GlaxoSmithKline to plead guilty, pay $3B for illicit promotion of drugs in re...
GlaxoSmithKline to plead guilty, pay $3B for illicit promotion of drugs in re...GlaxoSmithKline to plead guilty, pay $3B for illicit promotion of drugs in re...
GlaxoSmithKline to plead guilty, pay $3B for illicit promotion of drugs in re...
 
Press Release from the U.S. Dept. of Justice on Whistleblower Case Settlement...
Press Release from the U.S. Dept. of Justice on Whistleblower Case Settlement...Press Release from the U.S. Dept. of Justice on Whistleblower Case Settlement...
Press Release from the U.S. Dept. of Justice on Whistleblower Case Settlement...
 
MNK Employees vs. Company 9/6/2017 Lawsuit
MNK Employees vs. Company 9/6/2017 LawsuitMNK Employees vs. Company 9/6/2017 Lawsuit
MNK Employees vs. Company 9/6/2017 Lawsuit
 
Antitrust Aspects of Acquiring a Generic Drug Manufacturer
Antitrust Aspects of Acquiring a Generic Drug ManufacturerAntitrust Aspects of Acquiring a Generic Drug Manufacturer
Antitrust Aspects of Acquiring a Generic Drug Manufacturer
 
False Claims Act Focus ~ April 2013
False Claims Act Focus ~ April 2013False Claims Act Focus ~ April 2013
False Claims Act Focus ~ April 2013
 
FisherBroyles Alert - Miami Pharmacies Charged with Submitting $26 Million in...
FisherBroyles Alert - Miami Pharmacies Charged with Submitting $26 Million in...FisherBroyles Alert - Miami Pharmacies Charged with Submitting $26 Million in...
FisherBroyles Alert - Miami Pharmacies Charged with Submitting $26 Million in...
 
Marijuana Arrests Drop by 90% After Legalization in Virginia
Marijuana Arrests Drop by 90% After Legalization in VirginiaMarijuana Arrests Drop by 90% After Legalization in Virginia
Marijuana Arrests Drop by 90% After Legalization in Virginia
 
American Green Rush: Business Opportunity & Risks
American Green Rush: Business Opportunity & RisksAmerican Green Rush: Business Opportunity & Risks
American Green Rush: Business Opportunity & Risks
 
340B Piece Final
340B Piece Final340B Piece Final
340B Piece Final
 
Obamacare markets debut as early hurdles may slow signups - hCentive news
Obamacare markets debut as early hurdles may slow signups - hCentive newsObamacare markets debut as early hurdles may slow signups - hCentive news
Obamacare markets debut as early hurdles may slow signups - hCentive news
 
Cannabis Corruption in New Mexico - Will the Fed's Jump In?
Cannabis Corruption in New Mexico - Will the Fed's Jump In?Cannabis Corruption in New Mexico - Will the Fed's Jump In?
Cannabis Corruption in New Mexico - Will the Fed's Jump In?
 
Justice Department Recovers Over
Justice Department Recovers OverJustice Department Recovers Over
Justice Department Recovers Over
 
Crime and Policy III: Partnership for Safe Medicines overview for 2021
Crime and Policy III: Partnership for Safe Medicines overview for 2021Crime and Policy III: Partnership for Safe Medicines overview for 2021
Crime and Policy III: Partnership for Safe Medicines overview for 2021
 
False Claims Act: Claim Types & Legal Resrouces [Complete]
False Claims Act: Claim Types & Legal Resrouces [Complete]False Claims Act: Claim Types & Legal Resrouces [Complete]
False Claims Act: Claim Types & Legal Resrouces [Complete]
 
House easily votes to repeal ObamaCare tax on medical equipment
House easily votes to repeal ObamaCare tax on medical equipmentHouse easily votes to repeal ObamaCare tax on medical equipment
House easily votes to repeal ObamaCare tax on medical equipment
 
Family advocate webinar 2/2/2022
Family advocate webinar 2/2/2022Family advocate webinar 2/2/2022
Family advocate webinar 2/2/2022
 
The Cannabis Tech Race Is On - Leafly Sues Florida Over 3rd Party Marijuana O...
The Cannabis Tech Race Is On - Leafly Sues Florida Over 3rd Party Marijuana O...The Cannabis Tech Race Is On - Leafly Sues Florida Over 3rd Party Marijuana O...
The Cannabis Tech Race Is On - Leafly Sues Florida Over 3rd Party Marijuana O...
 
Johnson johnson-federal-release
Johnson johnson-federal-releaseJohnson johnson-federal-release
Johnson johnson-federal-release
 
California's marijuana industry under attack
California's marijuana industry under attackCalifornia's marijuana industry under attack
California's marijuana industry under attack
 
California's marijuana industry under attack
California's marijuana industry under attackCalifornia's marijuana industry under attack
California's marijuana industry under attack
 

Viewers also liked

Viewers also liked (15)

viciossssssssssssssss
viciossssssssssssssssviciossssssssssssssss
viciossssssssssssssss
 
Warehouse Fence Project - Steve Irwin
Warehouse Fence Project - Steve IrwinWarehouse Fence Project - Steve Irwin
Warehouse Fence Project - Steve Irwin
 
TAFE Cert IV
TAFE Cert IVTAFE Cert IV
TAFE Cert IV
 
Mapa
MapaMapa
Mapa
 
Mechanism cell deaths
Mechanism cell deathsMechanism cell deaths
Mechanism cell deaths
 
Mechanism cell deaths
Mechanism cell deathsMechanism cell deaths
Mechanism cell deaths
 
TECNOVIRTUAL
TECNOVIRTUAL TECNOVIRTUAL
TECNOVIRTUAL
 
الصلاة المستمرة
الصلاة المستمرةالصلاة المستمرة
الصلاة المستمرة
 
scan 002
scan 002scan 002
scan 002
 
David Rubio 2012(1)
David Rubio 2012(1)David Rubio 2012(1)
David Rubio 2012(1)
 
Desarrollo organizacional ilp92
Desarrollo organizacional ilp92Desarrollo organizacional ilp92
Desarrollo organizacional ilp92
 
Tài liệu học google adwords
Tài liệu học google adwordsTài liệu học google adwords
Tài liệu học google adwords
 
Familia
FamiliaFamilia
Familia
 
Bone healing/ dental crown & bridge courses
Bone healing/ dental crown & bridge coursesBone healing/ dental crown & bridge courses
Bone healing/ dental crown & bridge courses
 
Molina
MolinaMolina
Molina
 

Similar to GlaxoSmithKline's (GSK) $3 Billion Whistleblower Settlement Has Paid for One Of America's Most Expensive Failed Corporate Internal Investigations, Qui Tam Whistleblowers' Attorneys Say.

Off-Label Drug Promotion and the Use of DisclaimersfalseMcKenney,.docx
Off-Label Drug Promotion and the Use of DisclaimersfalseMcKenney,.docxOff-Label Drug Promotion and the Use of DisclaimersfalseMcKenney,.docx
Off-Label Drug Promotion and the Use of DisclaimersfalseMcKenney,.docxhopeaustin33688
 
INHERITED SIT_BEFORE PIC-DOJ PRESS RELEASE MAXIM SETTLEMENT SEPT 2011
INHERITED SIT_BEFORE PIC-DOJ PRESS RELEASE MAXIM SETTLEMENT SEPT 2011INHERITED SIT_BEFORE PIC-DOJ PRESS RELEASE MAXIM SETTLEMENT SEPT 2011
INHERITED SIT_BEFORE PIC-DOJ PRESS RELEASE MAXIM SETTLEMENT SEPT 2011Brad Bennett
 
FTC Sues Sellers of Weight-Loss Pills for False Advertising
FTC Sues Sellers of Weight-Loss Pills for False AdvertisingFTC Sues Sellers of Weight-Loss Pills for False Advertising
FTC Sues Sellers of Weight-Loss Pills for False Advertisingmagentafluid4264
 
Stark_Whitepaper_April_2014
Stark_Whitepaper_April_2014Stark_Whitepaper_April_2014
Stark_Whitepaper_April_2014James Sheehan
 
13. 2015 mwan 010815 testimony to federal election commission 1 8-15
13.  2015 mwan 010815  testimony to federal election commission  1 8-1513.  2015 mwan 010815  testimony to federal election commission  1 8-15
13. 2015 mwan 010815 testimony to federal election commission 1 8-15MedicalWhistleblower
 
Fraud And Abuse Legislation
Fraud And Abuse LegislationFraud And Abuse Legislation
Fraud And Abuse LegislationWilliam Copeland
 
6. rems. the next pharmaceutical enforcement priority
6.  rems. the next pharmaceutical enforcement priority6.  rems. the next pharmaceutical enforcement priority
6. rems. the next pharmaceutical enforcement priorityMatias González Muñoz
 
California fails to raise medical malpractice cap by floyd arthur
California fails to raise medical malpractice cap by floyd arthurCalifornia fails to raise medical malpractice cap by floyd arthur
California fails to raise medical malpractice cap by floyd arthurFloyd Arthur
 
Medical Malpractice Reform Resurrected in Congress By Floyd Arthur (PPT)
Medical Malpractice Reform Resurrected in Congress By Floyd Arthur (PPT)Medical Malpractice Reform Resurrected in Congress By Floyd Arthur (PPT)
Medical Malpractice Reform Resurrected in Congress By Floyd Arthur (PPT)Floyd Arthur
 
Indest, Health Law, 25_hlr_507
Indest, Health Law, 25_hlr_507Indest, Health Law, 25_hlr_507
Indest, Health Law, 25_hlr_507Miles Indest
 
Conte Presentation
Conte PresentationConte Presentation
Conte PresentationKelly Savage
 
Chapter 2Fraud and Abuse StarkPhysician Self-Referral and
Chapter 2Fraud and Abuse StarkPhysician Self-Referral and Chapter 2Fraud and Abuse StarkPhysician Self-Referral and
Chapter 2Fraud and Abuse StarkPhysician Self-Referral and EstelaJeffery653
 
酵素Powerpoint
酵素Powerpoint酵素Powerpoint
酵素PowerpointWang Wang
 

Similar to GlaxoSmithKline's (GSK) $3 Billion Whistleblower Settlement Has Paid for One Of America's Most Expensive Failed Corporate Internal Investigations, Qui Tam Whistleblowers' Attorneys Say. (19)

Off-Label Drug Promotion and the Use of DisclaimersfalseMcKenney,.docx
Off-Label Drug Promotion and the Use of DisclaimersfalseMcKenney,.docxOff-Label Drug Promotion and the Use of DisclaimersfalseMcKenney,.docx
Off-Label Drug Promotion and the Use of DisclaimersfalseMcKenney,.docx
 
INHERITED SIT_BEFORE PIC-DOJ PRESS RELEASE MAXIM SETTLEMENT SEPT 2011
INHERITED SIT_BEFORE PIC-DOJ PRESS RELEASE MAXIM SETTLEMENT SEPT 2011INHERITED SIT_BEFORE PIC-DOJ PRESS RELEASE MAXIM SETTLEMENT SEPT 2011
INHERITED SIT_BEFORE PIC-DOJ PRESS RELEASE MAXIM SETTLEMENT SEPT 2011
 
Legal Implications in Healthcare, Thomas Beimers - SLC 2015
Legal Implications in Healthcare, Thomas Beimers - SLC 2015Legal Implications in Healthcare, Thomas Beimers - SLC 2015
Legal Implications in Healthcare, Thomas Beimers - SLC 2015
 
FTC Sues Sellers of Weight-Loss Pills for False Advertising
FTC Sues Sellers of Weight-Loss Pills for False AdvertisingFTC Sues Sellers of Weight-Loss Pills for False Advertising
FTC Sues Sellers of Weight-Loss Pills for False Advertising
 
Stark_Whitepaper_April_2014
Stark_Whitepaper_April_2014Stark_Whitepaper_April_2014
Stark_Whitepaper_April_2014
 
13. 2015 mwan 010815 testimony to federal election commission 1 8-15
13.  2015 mwan 010815  testimony to federal election commission  1 8-1513.  2015 mwan 010815  testimony to federal election commission  1 8-15
13. 2015 mwan 010815 testimony to federal election commission 1 8-15
 
MedMal news
MedMal newsMedMal news
MedMal news
 
Fraud And Abuse Legislation
Fraud And Abuse LegislationFraud And Abuse Legislation
Fraud And Abuse Legislation
 
6. rems. the next pharmaceutical enforcement priority
6.  rems. the next pharmaceutical enforcement priority6.  rems. the next pharmaceutical enforcement priority
6. rems. the next pharmaceutical enforcement priority
 
GlaxoSmithKline Bribery & Corruption Case
GlaxoSmithKline Bribery & Corruption CaseGlaxoSmithKline Bribery & Corruption Case
GlaxoSmithKline Bribery & Corruption Case
 
California fails to raise medical malpractice cap by floyd arthur
California fails to raise medical malpractice cap by floyd arthurCalifornia fails to raise medical malpractice cap by floyd arthur
California fails to raise medical malpractice cap by floyd arthur
 
Medical Malpractice Reform Resurrected in Congress By Floyd Arthur (PPT)
Medical Malpractice Reform Resurrected in Congress By Floyd Arthur (PPT)Medical Malpractice Reform Resurrected in Congress By Floyd Arthur (PPT)
Medical Malpractice Reform Resurrected in Congress By Floyd Arthur (PPT)
 
Indest, Health Law, 25_hlr_507
Indest, Health Law, 25_hlr_507Indest, Health Law, 25_hlr_507
Indest, Health Law, 25_hlr_507
 
Conte Presentation
Conte PresentationConte Presentation
Conte Presentation
 
Amazon And Pill Pack Have Options: How May A Federal Trade Commission Antitru...
Amazon And Pill Pack Have Options: How May A Federal Trade Commission Antitru...Amazon And Pill Pack Have Options: How May A Federal Trade Commission Antitru...
Amazon And Pill Pack Have Options: How May A Federal Trade Commission Antitru...
 
Chapter 2Fraud and Abuse StarkPhysician Self-Referral and
Chapter 2Fraud and Abuse StarkPhysician Self-Referral and Chapter 2Fraud and Abuse StarkPhysician Self-Referral and
Chapter 2Fraud and Abuse StarkPhysician Self-Referral and
 
酵素Powerpoint
酵素Powerpoint酵素Powerpoint
酵素Powerpoint
 
Johnson johnson-courts-decision
Johnson johnson-courts-decisionJohnson johnson-courts-decision
Johnson johnson-courts-decision
 
Life Sciences Report
Life Sciences ReportLife Sciences Report
Life Sciences Report
 

GlaxoSmithKline's (GSK) $3 Billion Whistleblower Settlement Has Paid for One Of America's Most Expensive Failed Corporate Internal Investigations, Qui Tam Whistleblowers' Attorneys Say.

  • 1. GlaxoSmithKline's (GSK) $3 Billion Whistleblower Settlement Has Paid for One Of America's Most Expensive Failed Corporate Internal Investigations, Qui Tam Whistleblowers' Attorneys Say. GSK, et al.Civ. Massachusetts Assistant Attorney General Bob Patten zofran lawsuit settlements led the investigation on behalf of the states and the National Association of Medicaid Fraud Control Units ("NAMFCU"). Case Caption: United States ex rel. According to Emily Lambert of Kenney McCafferty, the Government joined the whistleblowers' case and filed a Complaint-in-Intervention adopting the whistleblower's claims. The FCA allows the Government to collect up to three times the amount it was defrauded, in addition to civil penalties from $5,500 to $11,000 per false claim. In successful qui tam whistleblower cases in which the Government intervenes, whistleblowers are entitled to receive a percentage of qui tam recoveries, typically 15-to-25 percent, generally known as, "the relator's share." Under the terms of the settlement agreement, the Government and the whistleblowers did not concede that their respective claims are not well founded. In turn, as is typical in civil agreements, GSK expressly denied liability, except for those admissions GSK agreed to make in connection with connection with a criminal Plea Agreement. When the two Kenney McCafferty-represented whistleblowers reported their concerns about illegal marketing practices they were witnessing in the
  • 2. field, GSK's top compliance executive, an attorney who now holds a similar position with another medical device manufacturer, became involved in and oversaw the ensuing internal investigation. Instead of changing the illegal conduct, the Company retaliated against the whistleblowers and they became the first to file an off-label marketing qui tam whistleblower Complaint against GSK. Specifically, according to the agreement, GSK has agreed to plead guilty to criminal charges that the company misbranded Wellbutrin and Paxil and it failed to report data relating to clinical experience, along with other data and information regarding the diabetes drug Avandia to the Food and Drug Administration ("FDA") in mandatory reports, all in violation of the Food, Drug and Cosmetic Act ("FDCA"). In addition to paying a $1.042 billion civil settlement to the federal and state Governments, as part of the Settlement Agreement GSK agreed to be bound by a Corporate Integrity Agreement ("CIA") with the Office of Inspector General of the United States Department of Health and Human Services ("OIG-HHS"). The federal investigation into GSK's marketing practices was conducted through a collaborative effort of the U.S. His law firm, Kenny McCafferty, P.C., represents the two whistleblowers who sparked the nine-year federal probe that ended with today's $3 billion payment to settle off-label drug marketing allegations involving nine prescription drugs. "When our clients were forced out of their marketing positions, GlaxoSmithKline ('GSK') had proof of illegal off-label prescription drug marketing. Attorney's Offices for the District of
  • 3. Massachusetts and the District of Colorado. No.: 11-10398 (D.Mass) About Kenney McCafferty, P.C.: Kenney McCafferty, P.C. Kenney McCafferty's qui tam lawsuits have resulted in cases in which more than $5 billion in civil and criminal fines and penalties have been recovered for federal and state Governments, resulting in the payment of hundreds of millions of dollars in whistleblower rewards. Contacts: Kenney McCafferty, P.C. For not-breaking access, as they become available, filed documents can be accessed via the "GSK" link on the quitam-lawyer.com homepage "Cases Over $100 Million." SOURCE Kenney McCafferty, P.C. COPYRIGHT 2012 PR Newswire Association LLC No portion of this article can be reproduced without the express written permission from the copyright holder. Copyright 2012 Gale, Cengage Learning. As a result, Advair's portion of taxpayers' recovery represents nearly 70 percent of the Government's total $1.017 billion civil settlement of our clients' claims, Lambert added. The nine prescription drugs covered by the settlement included Advair, Wellbutrin, Paxil, Lamictal, Zofran, Imitrex, Lotronex, Flovent and Valtrex. GSK maintained an elaborate illegal marketing regime for the prescription drugs included in today's settlement, including, according to filed documents:
  • 4. * Paying physicians (who could be counted on to influence their peers) as much as $25,000 for being a GSK "advisory board" member; * Enrolling 49,000 physicians and health professionals to be part of its speakers bureau; * Identifying physicians in academia to pay to speak on behalf of one of the company's drugs; * Creating the PowerPoint "slide kits" that physicians would use to deliver canned presentations; * Using an elaborate "FaxBack" system allowing drug marketing reps to suggest articles related to off-label uses. is the one of the most successful national law firms specializing in representing qui tam, tax, and SEC whistleblowers. In at least one case a patient died from a reaction that the company had evidence could occur; * Marketing Paxil, the antidepressant, to children under 18 when it had not been approved for youngsters, and despite GSK's own clinical trails that had shown that the drug was ineffective for children and also heightened the risk of suicide or other self-harming behavior three-fold; and, * Marketing the antidepressant Wellbutrin as superior to other antidepressant alternatives due to increased sexual functioning and weight loss, pushing the drug as the "happy, horny, skinny drug," to concisely encapsulate GSK's off-label Wellbutrin marketing campaign. Physicians are free to prescribe drugs for off-label uses, but pharmaceutical companies are prohibited from marketing the drugs for
  • 5. uses that have not been approved by the FDA. Thorpe, et al. Department of Justice, and the U.S. That led to the indictment of a GSK associate corporate counsel, said Deming. Federal charges against the former associate general counsel later were subsequently dismissed by the court. All rights reserved. . An ensuing GSK internal investigation verified their allegations, but the company took no action, choosing hefty profits over compliance and patient safety," said whistleblower attorney Tavy Deming of Kenney McCafferty. "GSK could have saved hundreds of millions, perhaps a billion or more dollars of the $3 billion it paid today by following through on the combined Human Resources /Corporate Compliance investigation they launched. Our clients properly reported those marketing misdeeds to management in 2001. Federal laws also prohibit pharmaceutical companies from paying kickbacks to physicians to induce prescriptions. v. The physicians would order these -off-label promotional materials by calling a toll-free number, and thus not appear to be responding to an illegal marketing effort by the drug marketing representative; * Pushing Imitrex, an adult medicine for migraine, for mild
  • 6. headaches, as well as for use in children, despite the FDA's rejection of GSK's application for child use due to lack of efficacy; * Pushing Lamictal, a drug approved only for partial seizures, in adults for other diagnoses. PHILADELPHIA, July 2, 2012 /PRNewswire/ -- GlaxoSmithKline has just paid for one of the most expensive failed internal investigations in corporate history, qui tam whistleblower attorney Brian Kenney said today. When you look at the detail and accuracy of Greg Thorpe's written complaints distributed to the highest levels of Glaxo (See 'Document Links' Below) it's almost surreal that the company took no corrective action. Lauren Stevens, District of Maryland) Thorpe and Hamrick provided first-hand revelations of GSK's pervasive marketing misconduct relating to the nine drugs identified in Kenney McCafferty's Complaint (See "Document Links" Below) and Exhibits (See "Document Links" Below) unsealed with today's settlement. The original Complaint is one of the first ever filed alleging prescription drug off-label promotion, Kenney said. When the whistleblowers' Complaints were still under seal and being investigated by the government GSK allegedly falsified and concealed documents in connection with an FDA inquiry into whether GSK marketed the antidepressant drug Wellbutrin off-label for weight loss, a
  • 7. central allegation in the whistleblowers' Complaints. When a pharmaceutical company's illegal marketing practices cause off-label prescriptions to be written by doctors, and those prescriptions are paid for by Medicare and Medicaid, the payment becomes an actionable False Claims Act ("FCA") violation, according to Kenney, who is a former federal prosecutor. Under the FCA, qui tam actions allow private citizens with knowledge of fraud to help the Government recover ill-gotten gains and additional civil penalties. Instead they ignored evidence of improper marketing and physician kickbacks. (U.S. (See "Document Links" Below) Extremely persuasive proof exposing illegal marketing of the asthma drug Advair for mild asthma was included in the insider evidence that Thorpe and Hamrick provided to Government investigators, Deming said. GSK's mild asthma marketing campaign contravened Advair's approved asthma use, which was limited to moderate and severe forms of asthma, and a black box warning on the drug's label, yet GSK's marketing efforts continued unabated into 2010. v. 215-367-4333 Brian Kenney bkenney@kenneymccafferty.com Tavy Deming tdeming@kenneymccafferty.com. Additional information about the firm is available at http://www.quitam-lawyer.com and http://www.tax-fraud.net. Document Links: Call the attorneys to obtain at-once copies of these documents. Generally, government-funded healthcare programs such as Medicare and Medicaid preclude reimbursement for off-label
  • 8. prescriptions. Now more than a decade later, GSK is essentially admitting that Thorpe had been right in 2001," Kenney said. "It's http://www.livescience.com/42890-zofran.html been a very, very, very long 10 years for whistleblowers Thorpe and Blair Hamrick." GSK's top management was aware of illegal marketing schemes involving the drugs, according to filed court documents