Big Fines Levied For Violations of False Claims Act

In an article that appeared in The Baltimore Sun (Jonathan D. Rockoff, Improper sales of medicines targeted; Drug firms have paid fines of $3.5 billion since 2001 for wrongful promotions, The Baltimore Sun, May 7, 2006 at 1A), it is reported that since 2001, pharmaceutical companies prosecuted under the False Claims Act have paid nearly $3.5 billion in penalties. These penalties have resulted from the improper promotion by pharmaceutical companies, which include improper promotions and kickbacks. “…One reason the law has been effective is its reward to tipsters who can receive 15 percent to 30 percent of the penalties against a company …”

To read more, see The Baltimore Sun.