Whistleblowers and Medicaid Programs Enriched by Botox Whistleblower Case

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The national whistleblower law firm of Nolan & Auerbach, P.A. represented two of the key whistleblowers in a successful federal and multi-state qui tam action against Allergan, Inc. “We are proud of the courageous acts that our clients have taken. The result is that the Medicaid program is further enriched to take care of some of our nation’s neediest citizens,” said Nolan & Auerbach, P.A. partner and former federal prosecutor Marcella Auerbach. This case is United States et al., ex rel. Cher Beilfuss and Kathleen O’Connor-Masse v. Allergan, Inc., No. 08-cv-1883 WSD (N.D. Ga.).

The national whistleblower law firm of Nolan & Auerbach, P.A. represented two of the key whistleblowers in a successful federal and multi-state qui tam action against Allergan, Inc. “We are proud of the courageous acts that our clients have taken. The result is that the Medicaid program is further enriched to take care of some of our nation’s neediest citizens,” said Nolan & Auerbach, P.A. partner and former federal prosecutor Marcella Auerbach. This case is United States et al., ex rel. Cher Beilfuss and Kathleen O’Connor-Masse v. Allergan, Inc., No. 08-cv-1883 WSD (N.D. Ga.).

Pursuant to the settlement agreement entered in this case, pharmaceutical manufacturer Allergan, Inc. has paid participating states $14,850,000 to resolve allegations that it unlawfully promoted its drug Botox® Therapeutic for unapproved uses and that it paid illegal remuneration to health care providers to induce them to prescribe the company’s products. The whistleblowers were rewarded 17% of the participating states' recovery. Under the settlement agreement executed last summer, the federal government has already received $210,150,000.

State False Claims Acts allow private citizens with detailed knowledge of Medicaid fraud to bring an action on behalf of the state governments. These statutes generally allow the states to recover three times the amount it was defrauded, in addition to civil penalties of $5,500 to $11,000 per false claim.

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Marcella Auerback

Ken Nolan
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