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Whistleblowers' Complaints Lead Eli Lilly to Pay $800 Million to Settle Civil Medicaid Fraud Charges, According to Berg & Androphy
Date:1/15/2009

to the federal government, and up to $362 million will go to states except those that are pursuing separate litigation. The states have not yet concluded negotiations, but it is believed that most states will accept a share of the settlement. Multiple relators will receive 18 percent of the settlement amounts. The relators' share of the federal settlement is more than $78 million, and could increase to more than $100 million after the resolution of state claims. Lilly also will be obligated to pay legal fees to the relators' attorneys.

The False Claims Act is a Lincoln-era law that allows private citizens with knowledge of fraud on the government to sue and share in the proceeds of any recovery. The law was enacted to combat widespread procurement fraud in the Civil War, but it fell into disuse in the 1940s. Amendments passed in 1986 made the False Claims Act the government's chief weapon in its war on fraud, and the Justice Department used it in its investigations of clinical laboratories and defense contractors in the mid-1990s. In pharmaceutical cases alone, more than $1 billion has been returned to the federal treasury through False Claims Act lawsuits.

     Attorney Contacts: Joel Androphy and Sarah Frazier, Berg & Androphy,
     Houston, 713.529.5622,http://www.bafirm.com.

     Media Contact: Erin Powers, Powers MediaWorks LLC, for Berg & Androphy,
     281.703.6000.

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