June 7, 2019 - Posts

Whistleblower Roundup – June 7th, 2019

A look back at the week’s news and developments affecting whistleblowers.


Insys Therapeutics to Pay $225 Million to Settle U.S. Opioid Investigation

Opioid manufacturer Insys Therapeutics has agreed to a $225 million settlement stemming from Insys’s payment of kickbacks and unlawful marketing practices of its highly addictive, opioid painkiller Subsys. From 2012 to 2015, Insys used “speaker programs” as a vehicle to pay bribes to doctors in exchange for increased Subsys prescriptions. The investigation arose from five False Claims Act lawsuits filed by whistleblowers. To read the full story from Bloomberg News, click here.


Fiat Chrysler Executive Files Whistleblower Lawsuit

The head of US Sales at Fiat Chrysler, Reid Bigland, is suing the automaker for allegedly retaliating against him for cooperating with an SEC investigation into the company. Bigland claims that Fiat Chrysler withheld about 90% of his pay after learning that he cooperated with the government’s probe into the company’s sales-reporting practices. To read the full story from CNN, click here.


United States Intervenes in False Claims Act Lawsuit Against Drug Maker Mallinckrodt

The United States filed a complaint under the False Claims Act against Mallinckrodt LLC for allegedly using a foundation to pay the patients’ copay obligations for its drug, Acthar. Mallinckrodt could then market the drug as “free” to doctors and patients while increasing its price. The allegations were originally filed in two cases under the whistleblower, or qui tam, provisions of the False Claims Act. To read the full DOJ press release, click here.



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