The third quarter of 2022 brought a number of noteworthy False Claims Act (FCA) settlements, including several over $20 million and one in the high nine figures. This post summarizes key settlements of interest to healthcare providers.

Pharmaceutical Companies

• On September 2, a pharmaceutical company agreed to pay $40 million to resolve two lawsuits alleging violations of the False Claims Act. The first lawsuit involved alleged kickbacks to hospitals and physicians to induce them to utilize certain drugs and the company’s marketing of the drugs for off-label uses that were not reasonable and necessary. A second lawsuit alleged that the company knew about but downplayed a drug’s risk of causing rhabdomyolysis in renewing contracts with the Defense Logistics Agency. The company was alleged to have submitted false claims to Medicare and the Medicaid programs of 20 states and the District of Columbia.
• On September 26, a pharmaceutical company agreed to pay $900 million to resolve allegations that it caused the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce them to prescribe certain drugs. The relator’s complaint alleged that over five years, the company offered and paid illegal remuneration to healthcare professionals who spoke at or attended company events in the form of speaker honoraria, speaker training fees, consulting fees, and meals.

Lab Companies

• On July 14, a lab company and its corporate parent agreed to pay $9.85...

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