The maker of EpiPen won't answer this yes or no question about its DOJ settlement

It's a simple yes or no question — does Mylan know the terms of its settlement with the Department of Justice or not?

Earlier this month it said it did. Specifically, it said it struck a deal that would have it pay the government $465 million for fleecing the Center for Medicare and Medicaid for years.

Mylan misclassified EpiPen as a generic drug to the Center for Medicare and Medicaid for years, which means it under reimbursed the government for the medication by quite a lot. That's a violation of the False Claims Act, and according to that law the government is entitled to $5,500 to $11,000 for each false claim they've made to the government, plus three times damages. read more »

Attorney predicts Theranos will not survive reduction in business services

A California company that claimed it could diagnosis diseases without invasive testing likely will soon cease operating at least some of its business services.

“I would think it would be a tough spot for them to operate right now, given what I know of their reputation,” Robert Carey, attorney with Hagens Berman Sobol Shapiro LLP in Phoenix, Arizona, told the Northern California Record.

Theranos CEO Elizabeth Holmes announced on Oct. 5 that the company, which is based in Palo Alto, California, is closing clinical labs and wellness centers, impacting 340 employees in Arizona, California and Pennsylvania.

Carey handles class-action lawsuits against different types of organizations and companies. He has served as lead counsel in cases such as the LifeLock sales and marketing litigation, Hyundai Motor America’s cases on sub-frame corrosion and airbag systems and the state of Arizona’s claim against McKesson Corp. for overcharging consumers buying prescription drugs. read more »

How a Civil War law forced a local medical group to pay $5.3M

In 1863, at the height of the Civil War, Congress passed legislation to ensure suppliers to the Union Army were not cheating the government.

More than 150 years later, that legislation — the False Claims Act — and its amended derivatives enabled a local worker to challenge the billing practices of her former employer, Hudson Valley Hematology Oncology Associates, resulting in a $5.3 million settlement announced Friday by Preet Bharara, U.S. Attorney for New York's Southern District. read more »

The Whistleblower Program Helps Identify Tax Noncompliance; However, Improvements Are Needed to Ensure That Claims Are Processed Appropriately and Expeditiously

The Internal Revenue Service (IRS) Whistleblower Program can be a powerful tool to assist the IRS in identifying violations of tax law and collecting funds that might otherwise be lost to tax evasion. However, improvements are needed to monitor the timeliness of whistleblower claims processing and ensure that program decisions are properly supported, according to a new report issued publicly today by the Treasury Inspector General for Tax Administration (TIGTA).

Internal Revenue Code Section 7623 authorizes the IRS to pay monetary awards to whistleblowers for information leading to detecting underpayments of tax or bringing to trial and punishment persons guilty of violating tax laws. However, whistleblowers and members of Congress continue to express concerns with the operation of this program.

In its review, TIGTA found that the Whistleblower Program has helped the IRS collect significant amounts of revenue by facilitating whistleblower claims reporting violations of the tax laws that may otherwise go unidentified. From Fiscal Year 2011 through February 2016, the IRS collected more than $2 billion because of information that whistleblowers provided. In addition, the Whistleblower Office has recently reduced inventory backlogs. However, the Whistleblower Office does not have appropriate controls in place to allow for sufficient oversight of claims processing, and whistleblowers are not always contacted to clarify allegations. read more »

Occupational Therapist Pleads Guilty to $2.6 Million Medicare Fraud Conspiracy

A licensed occupational therapist pleaded guilty today in Los Angeles for his role in a $2.6 million Medicare fraud scheme that involved billing for occupational therapy services that were not provided. read more »