NERA Economic Consulting recently published their annual report examining trends in securities class action litigation in 2021. Although the report found that filings in 2021 decreased overall, the proportion of claims targeting life science firms increased for the second year in a row, following a spike in suits connected to the COVID-19 pandemic.
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The BAYADA Companies Settle FCA and Kickback Allegations for $17M
On September 8, 2021, the U.S. Attorney’s Office for the District of New Jersey announced a settlement with BAYADA, BAYADA Home Health Care Inc., BAYADA Health LLC, and BAYADA Home Care (collectively, the BAYADA Companies) for $17 million. The settlement resolves allegations under the False Claims Act and Anti-Kickback Statute. No admissions of liability were…
DOJ Announces $160 Million Settlement with Mail-Order Diabetic Testing Supplier and Parent Company
On Monday, August 2, the Department of Justice announced that Arriva Medical LLC (“Arriva”) and its parent company, Alere Inc. (“Alere”), agreed to pay $160 million to settle claims that they violated the False Claims Act. Arriva was one of the largest mail-order diabetic supply companies in the nation until it ceased business operations in…
Johnson & Johnson, McKesson Corp., AmerisourceBergen Corp, and Cardinal Health proceed with $26 billion Settlement with States to Resolve to Resolve Opioid Claims
On July 21, 2021, a group of state attorneys general proposed a $26 billion settlement proposal to resolve claims that McKesson Corp., Cardinal Health, Inc., AmerisourceBergen Corp., and Johnson & Johnson (“J&J,” and together with McKesson Corp., Cardinal Health, Inc., and AmerisourceBergen Corp., the “Settling Parties”) contributed to the opioid epidemic in the United States.…
Bristol Meyers Squibb Pays $75 Million to Settle Medicaid Rebate Suit
On April 1, 2021, the DOJ announced that Bristol Meyers Squibb agreed to pay $75 million to resolve allegations that the company underpaid rebates owed under the Medicaid Drug Rebate Program. Of the total settlement amount, Bristol Meyers Squibb will pay approximately $41 million, plus interest, to the United States, and $34 million to participating…
Invidior Pays $300M to Settle Claims that it Improperly Marketed Suboxone
On April 27, 2021, the California Attorney General announced that Invidior plc and Invidior Inc. (collectively, “Invidior”) agreed to pay $300 million to settle claims that it falsely and aggressively marketed Suboxone, a drug product approved for use in recovering opioid addicts.…
Cornerstone Research 2020 Report Identifies Trends In Securities Litigation Filings Affecting Life Sciences Firms
A recently-published report from Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse analyzes securities class action litigation in 2020 and demonstrates both a continued focus by the plaintiffs’ bar on life science firms (including those in the pharmaceutical and biotechnology spaces), as well as specific trends in securities litigation affecting companies in…
U.S. Federal Circuit Continues To Pressure BioPharma For More When It Comes To Functional Claims
Biologic drugs, many of which are antibodies, represent an increasing share of the pharmaceutical market. In recent years, numerous broad functional patent claims directed at therapeutic antibodies have come under attack for failing to satisfy the written description and enablement requirements. The proper scope of these requirements has divided the biopharmaceutical industry. In its latest…
Year-End NERA Report Shows COVID-19-Related Federal Securities Litigation Disproportionately Targeting Life Sciences Firms
A recently-published report from NERA Economic Consulting provides a look back at securities class action litigation in 2020 and demonstrates the continued focus by the plaintiffs’ bar on life science firms, particularly those centered on the development and commercialization of drugs and devices.
The report found that excluding merger objections, the Health Technology and Services…
Biogen Pays $22 Million to Settle Kickback Claims
By Josh Levy
On December 17, 2020, the DOJ announced that Biogen agreed to pay $22 million to resolve allegations that it violated the False Claims Act by illegally using two non-profit foundations as a conduit to pay the copays for Medicare patients taking Biogen’s multiple sclerosis drugs, Avonex and Tysabri. As part of the alleged scheme, Biogen…