Posted: January 14, 2015

In recent years, the number of whistleblower cases in healthcare and pharmaceutical sectors has surged to unprecedented heights. These cases have proven to be a crucial implement for unearthing fraud against the government in healthcare, tax evasion, and other cases.

 In an effort to further encourage whistleblowers to come forward, U.S. Attorney General Eric Holder in the week before his resignation called for an increase in rewards for whistleblowers in financial fraud cases under the Financial Institutions Reform, Recovery and Enforcement Act. Also, the IRS will be increasing the number of personnel in its whistleblower office by more than 70 percent. According to the U.S. Securities and Exchange Commission, whistleblower tips received by the agency increased by more than 10 percent to 3,620 in 2014.

 Among recent whistleblower-originated cases, Shire Pharmaceuticals L.L.C. this past September agreed to pay almost $59 million to resolve a False Claims Act case alleging the company promoted and overstated the effectiveness of one of its drugs despite a clear lack of supporting clinical data. In the same month, various other FCA cases involving hospice, skilled nursing facilities, surgical centers, medical devices, and medical-center companies resulted in settlements totaling another $13 million. Annual FCA civil recoveries currently average more than $3.7 billion.

 If you are concerned that your company is participating in fraud against the government or misleading consumers, Kline & Specter’s whistleblower attorneys can help you file a whistleblower lawsuit. Call 800-243-1100.