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Jul 22, 2013 by |

Pharmaceutical Manufacturer Agrees to Settle Whistleblower Lawsuit for $500 Million


A large Indian pharmaceutical manufacturer has agreed to settle with the United States and states’ attorneys general in a whistleblower lawsuit.  The pharmaceutical manufacturer was alleged to have falsified data, violated Current Good Manufacturing and Laboratory Practices, and sold substandard and unapproved drugs.  This settlement happened due of the efforts of a whistleblower who reported false claims.

The case was based on violations of the federal False Claims Act and several state false claims laws and was filed in a U.S. District Court.  The False Claims Act allows whistleblowers to report fraud against the federal government by filing a lawsuit.  Whistleblowers receive a percentage of the recovery that the government receives.  To qualify as a whistleblower under the False Claims Act, a person is required to have direct knowledge of a false claim being submitted to the federal or state government.  The whistleblower does not have to be an employee, although most fraudulent schemes are complex; and employees and insiders are likely the ones who know the details of the fraud being perpetrated.

A variety of fraudulent schemes against the government lead to False Claims Act lawsuits being filed by whistleblowers.  The health care industry in general, but specifically Medicare and Medicade are typical targets for fraud perpetrated against the government.  Government contractors have also taken part in defrauding the government. 

The False Claims Act protects whistleblowers from retaliation by employers, including harassing or threatening employees for reporting fraud to the government. 

In this case, an employee who worked for a pharmaceutical manufacturer learned of fraudulent practices that were occurring and filed a whistleblower claim.  It is probable that the whistleblower saved taxpayers millions of dollars by stepping forward and revealing the fraud that was taking place. 

Evans Law Firm, Inc. is concerned about fraud and false claims being perpetrated against the government and will continue to thoroughly investigate fraud against the federal and state government.  Evans Law Firm, Inc. handles whistleblower/false claims, consumer fraud class actions, insurance and banking fraud, consumer product liability, elder abuse, and personal injury cases.  If you think that you have witnessed or are the victim of financial fraud by an insurance company, bank or individual then, contact Evans Law Firm, Inc. at (415) 441-8669 for a free and confidential consultation, or email

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