Pharmaceutical Sales Attorneys in Los Angeles

Do You Need to Report a Drug Company’s Illegal Activity?

Pharmaceutical companies are part of a multi-billion-dollar industry. Many companies fight among themselves to get their products to a small number of patients requiring highly specialized medication. When so much money is at stake, unethical sales and marketing often result.

If you need to hold a pharmaceutical company accountable for engaging in fraudulent or other kinds of illegal activity, Hennig Kramer Ruiz & Singh, LLP’s pharmaceutical sales attorneys in Los Angeles can hold responsible parties accountable.

Contact Hennig Kramer Ruiz & Singh, LLP online or call (213) 292-5444 and ask about scheduling a free evaluation of your legal situation to determine how we may be able to assist you.

Common Whistleblower Cases in the Pharmaceutical Industry

Although there can be many types of fraud involving pharmaceutical sales and marketing, there are commonly reported in whistleblower cases under the Federal False Claims Act and the federal Anti-Kickback Statute, 42 U.S.C. §1328-7b.

Illegal Kickbacks

Kickbacks include direct payments to licensed medical professionals, health insurers and pharmaceutical benefits managers for prescribing medications or products made by a specific manufacturer. Other types of noncash illegal kickbacks include vacations, tickets to major events, research funding, and placement on paid “advisory boards” that require no actual participation to receive payment

Off-Label Marketing

The federal Food and Drug Administration (FDA) approves drugs for the treatment of very specific medical conditions. Pharmaceutical manufacturers are prohibited from marketing the drug for any other purpose than what it is labeled for. However, doctors may prescribe medications to treat symptoms, even if the specific condition has not been diagnosed. Pharmaceutical companies often have their sales staff promote products for “off-label” usage when selling directly to doctors.

Inflated Product Prices

Federal Medicare sets the prices for drugs prescribed to program participants and Medicaid programs operated by the states. The price charged is supposed to be the average wholesale price, but pharmaceutical companies often artificially inflate the prices significantly. The inflated prices often serve as a financial inducement for pharmacists, benefits managers and other parties who may benefit.

Medicaid Billing Fraud

To be included in the Medicaid program, pharmaceutical companies must agree to sell their drugs to the federal government at the lowest price. However, these companies often make their products available to pharmacists, health maintenance organizations and other organizations at a lower price, without reporting it to the federal government.

This is a summary of just a few of the most commonly known types of fraud and corruption practiced by pharmaceutical companies and wholesale distributors. In an annual $100-billion industry, the manufacturers continue to find clever ways to beat the laws.