The manufacturer of the antifungal medication Mycamine has settled a whistleblower lawsuit in Philadelphia for $7.3 million.
Under terms of the settlement with the U.S. Department of Justice, Astellas Pharma US Inc., agreed to pay $4.2 million to the federal government and $3.1 million to states that paid for the drug through Medicaid. More than $700,000 of the settlement amount will be paid to Frank Smith, a sales representative who blew the whistle on the company. The federal False Claims Act’s whistleblower program permits private individuals to sue for false claims on behalf of the government and to share in any recovery.
In his qui tam lawsuit, Smith alleged that Astellas aggressively marketed Mycamine, an intravenous medication for the treatment of fungal infections of the esophagus in adults, and pressured its sales force to promote the drug to doctors at children’s hospitals although it was never approved for use in children.
Before joining Ross Feller Casey in March 2014, McCormick was part of the team that represented Smith and prosecuted the Astellas case with the government. McCormick also has assisted the U.S. government prosecute several landmark actions, including representing individuals in four of the largest whistleblower settlements in the nation’s history.
If you have information about fraud involving federal funds or against the U.S., or a state or local government, contact the experienced Philadelphia whistleblower lawyers at Ross Feller Casey.
For more information, go to http://www.rossfellercasey.com/practice-areas/whistleblower-litigation/