PHILADELPHIA, May 29, 2019 /PRNewswire/ -- Pharmaceutical
companies Almirall, LLC (formerly known as Aqua Pharmaceuticals,
LLC), of Pennsylvania, and
Almirall, S.A., a Spanish company, have agreed to pay the United States $3.5
million to resolve allegations that they used kickbacks to
induce physicians to purchase their dermatology products.
The California Department of Insurance also settled a separate,
but similar, claim on behalf of that state against the companies
for $3.1 million at the same
time.
The settlements stem from a whistleblower complaint filed by a
former employee of Aqua pursuant to the qui tam provisions
of the False Claims Act.
Ross Feller Casey, LLP, a leading
Philadelphia-based personal injury
law firm with a national reputation, represented the whistleblower
in the matter. Following the whistleblower's filing, the government
intervened and Brian J. McCormick,
Jr. of Ross Feller Casey
worked with government lawyers to litigate and ultimately settle
this case.
"Decisions about pharmaceutical products should be based on the
best interests of the patient, not on whether the manufacturer pays
a kickback," said McCormick, who has a large and successful
whistleblower practice. "These sorts of improper financial
incentives undermine the integrity of medical decisions, waste
taxpayer funds and are unfair to competitors who play by the
rules."
The whistleblower, a former sales representative of the company
in suburban Philadelphia, alleged
that Aqua caused false claims to be submitted to Medicare by using
illegal kickbacks, including excessive speaker and advisory fees,
as well as gifts and meals to staff in doctors' offices to induce
orders of dermatologic products, including Monodox®,
Cordran® and ACTICLATE®. The U.S. concluded
that these payments, which took place over several years across the
U.S., violated the Anti-Kickback Act.
The settlement was the result of a significant effort by the
U.S. Attorney's Office for the Eastern District of Pennsylvania. Under the settlement, the
whistleblower will receive more than $1.7
million.
McCormick praised the government's work in the case. "The
attorneys and investigators were incredibly diligent in
investigating the allegations in our complaint," McCormick said.
"It was an honor to work alongside Tony
Scicchitano and Charlene
Fullmer and to stop this type of misconduct."
Ross Feller Casey's whistleblower
practice group represents whistleblowers in False Claims Act cases
as well as cases filed under IRS, SEC and other whistleblower
statutes.
Contact: Brian J. McCormick, Jr.
at (215) 231-3740 or (215) 687-7965.
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SOURCE Ross Feller Casey, LLP