Pharmaceuticals Industry Named No. 1 Source of Fraud Related Settlements
November 16, 2010
Why doesn’t this surprise me? Granted, the Pharmaceuticals response to this would be that they settled cases as a business decision–that is it was cheaper to settle rather than to litigate and win. Insurance companies do that all the time and sometimes it is even a sound business decision.
Perhaps that is true. Which could mean that the Pharmaceuticals have incorporated the settlements and the fines they get for committing alleged frauds into the cost of doing business and so all is well.
On Monday, the group Taxpayers Against Fraud released a new report that found, “All of the top ten federal False Claims Act settlements in FY 2010 involved health care, with eight involving fraud committed by pharmaceutical companies.” Or as the Associated Press put it, “In the 1990s, the pharmaceutical industry repeatedly was named the most profitable industry in the world. More than a decade later, the industry tops a more dubious list: the No. 1 source of fraud-related settlements with the Department of Justice.” AP reports.