DeveLopments in faLse cLaims act Litigation
Trial & litigation Section Chair : Brandon Faulkner – Holland & Knight , LLP
False Claims Act relator ’ s ( whistleblower ’ s ) counsel and defense counsel can expect increased enforcement activity by the United States Department of Justice in the months and years ahead . In a press release and parallel speech by U . S . Attorney General Jeff Sessions last month , the DOJ announced the creation of the Prescription Interdiction and Litigation ( PIL ) Task Force . According to the DOJ , The PIL Task Force will combat the opioid crisis at every level of the distribution system , from manufacturers to distributors ( including pharmacies , pain management clinics , drug testing facilities , and individual physicians ).
In his speech , Attorney General Sessions said , “ The PIL Task Force will tackle the opioid crisis ‘ at its root ’ and will use the False Claims Act ( FCA ) and other tools to crack down on pain management clinics , drug testing facilities and physicians who over-prescribe opioids .”
Closer to the Tampa Bay area , the United States Attorney for the Middle District , Maria Chapa Lopez , reiterated AG Sessions ’ remarks and stressed her office will “ use every enforcement tool available , both civil and criminal , in the fight against the opioid crisis ” and against “ fraudsters ” generally . Using the False Claims Act as an enforce - ment tool , her office has collected
hundreds of millions of dollars in civil settlements with individual physicians , hospitals , healthcare companies , and other businesses in recent years . That enforcement activity is expected to increase .
The False Claims Act , 31 U . S . C . §§ 3729- 3733 , is the federal law that imposes liability on persons and companies who defraud govern - mental programs . It is the federal government ’ s primary litigation tool in combatting fraud against the government . The law includes a qui tam provision that allows people who are not affiliated with the government , called “ relators ” under the law , to file actions on behalf of the government ( informally called “ whistleblowing ”). Relators filing under the FCA stand to receive a portion of any recovered damages . Claims under the FCA have typically involved health care ( Medicare , Medicaid , and Tricare ), military , or other government spending programs and dominate the list of largest pharmaceutical payments .
The PIL Task Force will expand on the efforts of the Opioid Fraud and Abuse Detection Unit and will use sophisticated data analytics to identify and prosecute or sue ( using the FCA ) individuals and companies who are contributing to the opioid epidemic .
© Can Stock Photo / FabioBerti the DoJ ’ s use of the false claims act as a tool in its enforcement efforts to deal with the opioid crisis ( and fraud generally ) is a testament to the fca ’ s effectiveness in uncovering fraud and misuse of government funds .
In 2016 , the federally funded Medicare prescription drug program paid more than $ 4 billion for opioids . The DOJ sees the FCA as a natural fit for fighting opioid abuse . Last year , the government settled FCA cases against a number of entities over opioid sales , including several pharmacies . The PIL Task Force will also review existing state and local government enforcement actions and , through analytic research , determine if federal law ( the FCA or other federal statutes ) can assist in a recovery . This trend expands the focus on prescribers and health care providers who submit claims to federal health care programs for opioid prescriptions , as well as drug treatment and drug testing services .
The DOJ ’ s use of the False Claims Act as a tool in its enforcement efforts to deal with the opioid crisis ( and fraud generally ) is a testament to the FCA ’ s effectiveness in uncovering fraud and misuse of government funds .
Author : Kevin J . Napper – Law Office of Kevin J . Napper , P . A .
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