Top False Claims Act Cases by Civil Award Amount

  • Cases with an asterisk (*) are cases in which criminal penalties were also assessed.
  • Cases with a diamond ( ♦ ) are state cases.
     

Company

Civil Fine ($)

GlaxoSmithKline*

2,000,000,000

Johnson & Johnson*

1,720,000,000

Pfizer*

1,000,000,000

Bank of America

1,000,000,000

Tenet

900,000,000

Abbott*

800,000,000

Wyeth & Pfizer

786,400,000

HCA*

731,400,000

Merck

650,000,000

HCA*

631,000,000

Merck*

628,000,000

JPMorgan Chase

614,000,000

Amgen*

612,000,000

GlaxoSmithKilne*

600,000,000

Serono Group*

567,000,000

The Boeing Company

565,000,000

TAP Pharmaceuticals

559,483,560

New York State and NYC

540,000,000

Astra Zeneca

520,000,000

Pfizer*

491,000,000

DaVita

450,000,000

Schering Plough

435,000,000

Eli Lilly

438,000,000

Abbott Labs*

400,000,000

DaVita

400,000,000

Novartis

390,000,000

Fresenius Medical Care of N. America*

385,000,000

Cephalon

375,000,000

Tenet Health Care*

368,000,000

United Technologies

365,000,000

Shire PLC

350,000,000

Ranbaxy*

350,000,000

Bristol-Myers Squibb

328,000,000

Northrop-Grumman

325,000,000

SmithKline Beecham Clinical Labs

325,000,000

HealthSouth*

325,000,000

Olympus *

310,800,000

National Medical Enterprises*

324,200,000

Gambro Healthcare

310,000,000

Schering-Plough*

292,969,482

Mylan

280,000,000

Roxanne

280,000,000

AstraZeneca*

266,127,844

St. Barnabas Hospitals

265,000,000

Celgene 259,000,000

Rapamune*

257,400,000

Bayer Corp.*

257,200,000

Millennium Health

256,000,000

Schering Plough

250,000,000

Quest Diagnostics♦

241,000,000

First American Health Care Of Georgia (only fractional payment actually made after bankrupcy)

225,000,000

Amerigroup

225,000,000

First Tennessee Bank

212,500,000

Deutsche Bank

202,000,000

Actavis (global settlement after verdict)

202,000,000

Oracle

200,000,000

U.S. Bank

200,000,000

Endo Pharmaceutical

192,500,000

McKesson

190,000,000

BankAmerica*

187,000,000

Laboratory Corp. of America*

182,000,000

Aventis Pharmaceuticals

180,000,000

Endo Pharmaceuticals*

171,900,000

Beverly Enterprises Inc.*

170,000,000

Zimmer Inc.

169,500,000

Purdue Frederick Co

160,000,000

Citigroup

158,000,000

eClinicalWorks (ECW),

155,000,000

Johnson & Johnson♦ (verdict)

158,000,000

Par Pharmaceutical

154,000,000

Pfizer/Warner-Lambert*

152,000,000

Medco

150,000,000

Sandoz

150,000,000

Amedisys

150,000,000

United Technologies

150,000,000

Maxim

150,000,000

GlaxoSmithKline

150,000,000

Forest Pharmaceuticals

149,000,000

Life Care Centers of America

145,000,000

Blue Cross Blue Shield Illinois*

140,000,000

Wellcare

137,500,000

Caremark

137,500,000

Mario Gabelli et. al

130,000,000

NetApp

128,000,000

Kindred Healthcare Inc.

125,000,000

Warner Chilcott*

125,000,000

King Pharmaceutical

124,000,000

OmniCare

124,000,000

MetLife Home Loans LLC

123,500,000

Adventist Health System

118,700,000

Freedom Mortgage Corporation

113,000,000

Northrop Grumman

111,200,000

Shell Oil Company

110,000,000

Sanofi

109,000,000

Vencor Inc./Ventas Inc.

104,500,000

Supreme Foodservice GmbH.

101,000,000



GlaxoSmithKline:

GlaxoSmithKline plead guilty to several criminal misdemeanor charges and paid $3 billion ($2 billion civil, $1 billion criminal) to settle a series of False Claims Act cases brought to the U.S. Government by whistleblowers. GSK was charged with illegally promoting nine different prescription drugs, including the antidepressants Wellbutrin and Paxil, the diabetes medication Avandia, the pulmonary drug Advair, and the anti-nausea medication Zofran, as well as five other drugs: Imitrex, Lamictal, Lotronex, Floven, and Valtrex. GSK was charged with pervasive illegal conduct that continued for more than a decade, including paying kickbacks, doctoring and fabricating scientific research and articles, bribing doctors with vacations to Hawaii and Puerto Rico, and creating marketing kits packed with unsubstantiated claims.  

Johnson & Johnson:

Johnson & Johnson paid $2.2 billion to resolve criminal and civil liability arising from allegations relating to kickbacks and off-label marketing of the drugs Risperdal, Invega and Natrecor. Risperdal’s illegal sales practices began when the drug was off-label marketed by its Janssen subsidiary, whose vice president of sales, Alex Gorsky, is now CEO of Johnson & Johnson.  The global resolution is one of the largest health care fraud settlements in U.S. history, including criminal fines and forfeiture totaling $485 million and civil settlements with the federal government and states totaling $1.72 billion.

Pfizer:

Pfizer paid a total of $2.3 billion, of which $1.3 billion was a criminal fine for kickbacks and off-label marketing and $1 billion was paid under the False Claims Act. The drugs involved were Bextra (an anti-inflammatory drug), Geodon (an anti-psychotic drug), Lipitor (a cholesterol drug), Norvasc (anti-hypertensive drug), Viagra (erectile dysfunction), Zithromax (antibiotic), Zyrtec (antihistamine), Zyvox (an antibiotic), Lyrica (an anti-epileptic drug), Relpax (anti-migraine drug), Celebrex (anti-inflammatory drug), and Depo-provera (birth control).

Bank of America:

Bank of America and its former and current subsidiaries, including Countrywide Financial Corporation and Merrill Lynch will pay $16.65 billion– the largest civil settlement with a single entity in American history ­— to resolve federal and state claims. The settlement relates to the packaging, marketing, sale, arrangement, structuring and issuance of RMBS, collateralized debt obligations (CDOs), and the bank’s practices concerning the underwriting and origination of mortgage loans. The investigation into these practices were in part brought by three private whistleblower lawsuits filed under seal pursuant to the False Claims Act. As part of the settlement, Bank of America and Countrywide have agreed to pay $1 billion to resolve their liability under the False Claims Act.

Tenet:

In July 2006, Tenet Healthcare (formerly known as NME) agreed to pay the Federal Government $900 million for billing violations that include manipulation of outlier payments to Medicare, as well as kickbacks, upcoding, and bill padding.  The DoJ press release notes that the settlement was based on the company's ability to pay; a nice way of saying that Tenet stole more money than was recovered in this settlement.

Abbott:

Abbott Laboratories paid over $1.5 billion to settle civil and criminal charges in part brought by four False Claims Act qui tam cases alleging the company promoted the off-label use of Depakote, an anti-seizure drug.  The settlement, includes a $700 million criminal fine and an $800 million civil settlement (covered under the False Claims Act cases) with the federal government  ($560,851,357) and the states ($239,148,643) that chose to participate. 

Wyeth and Pfizer:

Wyeth and Pfizer paid $784.6 million  to resolve allegations that Wyeth knowingly reported to the government false and fraudulent prices on two of its proton pump inhibitor (PPI) drugs, Protonix Oral and Protonix IV.  Pfizer, which is headquartered in New York City, acquired New Jersey-based Wyeth in 2009, approximately three years after Wyeth had ended the conduct that gave rise to the settlement.

HCA:

In December 2000, The Healthcare Company (HCA) pled guilty to criminal conduct and agreed to pay more than $840 million in criminal fines, civil penalties and damages for unlawful billing practices. $731,400,000 was recovered under the False Claims Act.  The settlement resolved allegations that the company knowingly ordered lab tests that were not medically necessary, "upcoding" medical problems in order to get higher reimbursements, billing the government for advertising under the guise of "community education," and billing the government for non-reimbursable costs incurred in the purchase of home health agencies. 

Merck:

In January 2008, Merck settled the very first nominal pricing fraud case where the company was accused of taking kickback and violating Medicaid best price regulations for Vioxx (an arthritis drug), Zocor (a cholesterol drug), Pepcid (an acid-reflux drug), Cozaar (a hypertensive medication), Fosamax (a bone loss drug) Maxalt (a migraine medication) and Singulair (an asthma medication).

HCA:

This settlement resolves HCA's civil liability for false claims including cost report fraud and the payment of kickbacks to physicians. In a separate administrative settlement with the Centers for Medicare & Medicaid Services (CMS), HCA agreed to pay an additional $250 million to resolve overpayment claims arising from its cost reporting practices. Combined with the December 2000 settlement, the government has recovered $1.7 billion from HCA, by far the largest recovery ever reached by the government in a health care fraud investigation.

Merck*:

Merck paid $628 million to resolve allegations that its representatives made inaccurate and misleading statements about the drug Vioxx's cardiovascular safety in order to increase sales. Merck also made false statements to state Medicaid agencies about the cardiovascular safety of Vioxx, and that those agencies relied on Merck's false claims in making payment decisions about the drug. In addition to the civil penalty, Merck was found guilty of criminal charges that resulted in a $950 million total penalty. 

JPMorgan Chase:

JP Morgan Chase paid $614 Million to settle allegations that they knowingly provided noncompliant Federal Housing Authority and Veterans Affairs insured loans for over a decade, beginning in 2002. In addition to issuing the noncompliant loans, JP Morgan Chase failed to disclose the results of an internal investigation that concluded they had issued hundreds of loans that should not have been insured by FHA or the VA. When unqualified loans defaulted, the FHA and VA had to cover the losses, even though JP Morgan Chase falsely approved them in the first place.