Headlines that Matter for Companies and Executives in Regulated Industries.

Jury Orders Eli Lilly To Pay $61 Million

A federal jury in Illinois found that, beginning around 2004, drug manufacturer Eli Lilly deliberately underpaid rebates to Medicare programs by excluding retroactive drug prices from metrics that were required to calculate drug rebates. In issuing its $61 million verdict, the jury rejected claims by Eli Lilly that it did not act knowingly, but rather relied on the head of its government price reporting group, who was responsible for analyzing complex materials to determine whether the Company’s payments to Medicaid were sufficient.

DOJ’s Continuing Prosecution of Covid-19 Relief Fraud

A Massachusetts man pleaded guilty to one count of bank fraud for allegedly engaging in a scheme to obtain $1.2 million in Paycheck Protection Program (PPP) funds by submitting false applications to financial institutions and the Small Business Administration. According to DOJ’s press release, the man submitted six false applications that misstated the revenue of his companies, the persons employed, and the amounts paid to those employees. Read the DOJ’s press release here.

A Kentucky man was recently sentenced to 33 months’ imprisonment after he pleaded guilty to wire fraud for submitting two fraudulent applications for PPP loans. He is alleged to have provided fake tax documents and payroll records that misrepresented the number of employees at his businesses and his...

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