Anyone who has been paying attention to the news in recent years understands that the greatest drug epidemic of our time is not cocaine, heroin, or meth, but rather the opioids that are legally manufactured and prescribed throughout the country. Certainly, there are valid uses of opioids, but the problem lies with people who become addicted to opioids (whether stemming from a legitimate prescription or not), and seek the drugs out on the black market. The opioid crisis has cost countless lives, but it has also wreaked havoc on public resources for medical care.
One tool that appears to be coming into favor in battling the epidemic is the False Claims Act (FCA), a law going back over 150 years which allows private citizens and the government to go after those parties who defraud the federal government through false and/or inflated claims.
How the FCA Can Be Used to Fight the Opioid Epidemic
In 2015, the Department of Justice (DOJ) won a $7.55 FCA settlement from Galena Pharmaceuticals over kickbacks it paid doctors to overprescribe its opioid drug Abstral. The kickbacks included free meals paid to doctors, payments of high speaking fees to doctors to attend Galena events, and performance-based rebates to pharmacies that sold Abstral. Several doctors were sentenced to federal prison for their role in accepting indirect kickback benefits to prescribe the opioid.
Notably, the woman who originally brought the FCA claim based on overprescription of opioids, Lynne Dougherty, received $1.2 million as a whistleblower reward for her part in bringing the fraudulent activity to light.
In a speech to the Federal Bar Association Qui Tam Conference in February 2018, Deputy Associate Attorney General Stephen Cox further highlighted the use of the FCA to fight back against pharmaceutical companies, doctors, hospitals and others who attempt to profit on the back of taxpayers by overprescribing opioids.
There, Cox stated, “The False Claims Act provides the government with a powerful tool to pursue all of those in the opioid distribution chain that are responsible for the improper marketing, distribution, prescription and diversion of opioids – from pharmaceutical manufacturers to physicians, and everyone in between.”
Cox went on to discuss how the FCA has been used effectively in the Galena case and other cases, and concluded, “The False Claims Act is a tool we are increasingly using to address the opioid crisis.”
Work With a Whistleblower Attorney to Bring an FCA Claim
Any person with original information relating to an opioid-related scheme that ultimately victimizes taxpayers can bring an FCA claim and potentially win a financial reward, whether that person be a doctor, a pharmacist, a nurse, an administrator, a pharmaceutical representative, or any other party.
At Kreindler & Associates, our experienced healthcare fraud attorneys will work with you every step of the way to determine your appropriate course of action, protect you from retaliation, and collect your much-deserved reward. If you suspect that someone is committing kickback fraud, contact us today for an evaluation of your allegations.
