Hagens Berman Blog

Whistleblower News: Facebook, McKesson, Medicare Scheme

by HB Whistleblower Legal Team

04/11/2018

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Why is Mark Zuckerberg testifying in Congress?

It is likely to get uncomfortable for Facebook's boss

With great corporate power comes great responsibility. Many politicians and onlookers feel that Mark Zuckerberg, the boss of Facebook, has been irresponsible in his oversight of the world’s largest social-networking company.

Facebook has spent the past 18 months defending itself against pointed criticism, including allegations that it has done too little to stop the spread of fake news and extremist propaganda, and that it unwittingly enabled Russian meddling in America’s election and Britain’s “Brexit” vote in 2016.

The latest scandal, involving the sharing of Facebook data with third parties by Cambridge Analytica, a political consultancy, has sparked an acute corporate crisis, as well as a political reckoning. In America Congressional committees often summon experts to answer questions about topics of national concern. In the past year Mr Zuckerberg has sent his general counsel to answer politicians' questions, but this time he is going himself. read more »

14 years of Mark Zuckerberg saying sorry, not sorry

Do you trust Mark Zuckerberg?

From the moment the Facebook founder entered the public eye in 2003 for creating a Harvard student hot-or-not rating site, he’s been apologizing. So we collected this abbreviated history of his public mea culpas.

It reads like a record on repeat. Zuckerberg, who made “move fast and break things” his slogan, says sorry for being naive, and then promises solutions such as privacy “controls,” “transparency” and better policy “enforcement.” And then he promises it again the next time. You can track his sorries in orange and promises in blue in the timeline below.

All the while, Facebook’s access to our personal data increases and little changes about the way Zuckerberg handles it. So as Zuckerberg prepares to apologize for the first time in front of Congress, the question that lingers is: What will be different this time? read more »

The Family Trying to Escape Blame for the Opioid Crisis

Relatives of the makers of OxyContin claim they have never benefited from money tied to the painkiller. A court document suggests otherwise.

Much as the role of the addictive multibillion-dollar painkiller OxyContin in the opioid crisis has stirred controversy and rancor nationwide, so it has divided members of the wealthy and philanthropic Sackler family, some of whom own the company that makes the drug. read more »

McKesson Lawsuit Puts Drug Distributors Back Into Harsh Public Spotlight

McKesson and other drug distributors are having a difficult time steering clear of controversy, with the latest blow a lawsuit alleging McKesson has violated the False Claims Act.

With a lawsuit charging McKesson Inc. with pooling and reselling cancer medication, drug distributors have been thrust back into a spotlight of controversy.

The legal action, brought in New York federal court by Florida physicians group Omni Healthcare Inc., alleges the company violated the False Claims Act by collecting cancer medication left over from single-dose vials, repacking it under nonsterile conditions and selling to medical providers at a discount. The nonsterile conditions could have led to infections in cancer patients. read more »

Theranos, Which Somehow Still Employs People, Lays Off Nearly All Its Staff

Theranos, the hubristic firm that promised efficient blood-testing—and which was revealed by degrees to be writing checks its technology couldn’t cash—still employed approximately 125 people earlier this week. As of today, according to The Wall Street Journal, than number is now “two dozen or fewer.”

Led by CEO Elizabeth Holmes, Theranos spent its first decade in “stealth mode,” arriving on the scene as a much-hyped solution to blood-testing that alleged to be portable, accurate, and capable of gleaning its data from only a finger prick. Revelations in the press—stemming largely from the Journal—unraveled the firm’s lofty and undeliverable promises.

Last month, the SEC charged Theranos, Holmes, and former president Ramesh Balwani with “massive” fraud. As a result, Holmes relinquished majority control of the company and is not allowed to serve as officer of a public company for a decade. Due to a prior citation, she also cannot operate a lab for two years. read more »

Uber Whistleblower Susan Fowler On What Every Company Should Do To Stop Harassment

Susan Fowler rocked the tech world with her 2,900-word essay last February about her experience of sexism and harassment at her former employer Uber. Her blog post caused the ride-hailing service to investigate its work culture, harassment complaints and policies, culminating in the firing of 20 executives. read more »

Two Tennessee Health Care Executives Charged for Role in $4.6 Million Medicare Kickback Scheme

Two Tennessee health care executives were charged in an indictment unsealed today for their alleged participation in a $4.6 million Medicare kickback scheme involving durable medical equipment. read more »