DOJ Settles False Claims Act Matter; Whistleblower to Receive 15% of Recovery

03/28/2012 // San Francisco, CA, USA // Whistleblower Law Firm (Press Release) // Jeffrey Keller // (press release)

In a recent press release, the United States Department of Justice reported that Dava Pharmaceuticals Inc. has settled a qui tam lawsuit to resolve allegations that it violated the federal False Claims Act. As part of the settlement, Dava has agreed to pay $11 million. Dava will pay $5.7 million to the federal government. It will also pay over $5 million to the Medicaid participating states and $200,000 to public health services entities who paid inflated prices for particular drugs. The individual who filed the lawsuit under the whistleblower provisions of the False Claims Act will receive 15 percent of the settlement proceeds.

The settlement in this qui tam action resolves allegations that Dava and its corporate predecessors knowingly underpaid rebate obligations under the Medicaid Prescription Drug Rebate Program and that it overcharged public health service entities for certain products. The allegations cover conduct spanning a four-year period and were raised in a lawsuit filed in federal court in Maryland.

The False Claims Act’s qui tam provisions allow private citizens to bring civil actions on behalf of the United States against wrongdoers. Many states have comparable statutes that allow whistleblowers to sue on behalf of the states. These individuals are then entitled to share in any monetary recovery, whether the case is tried in court or settled pre-trial.

If you believe someone has committed fraud against a state government or against the federal government and you would like to share your concerns with an experienced whistleblower attorney, contact the qui tam attorneys at Keller Grover LLP at 866.486.1537or via email at [email protected]

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