Drug Manufacturer Sanofi US Settles False Claims Act Allegations for $109 Million

In December 2012, the Department of Justice announced a $109 million settlement it reached with Sanofi US, an international drug manufacturer, resolving False Claims Act allegations that were brought against the company regarding its knee injection drug, Hyalgan.

According to the complaint filed against Sanofi US, the manufacturer gave its sales representatives numerous free samples of Hyalgan.  The sales representatives would then allegedly enter into sales arrangements with physicians promising them a certain number of free samples for every purchase of Hyalgan.  By entering into these arrangements, Sanofi effectively lowered the price of Hyalgan.  Because Hyalgan and similar drugs from Sanofi’s competitors were reimbursed at the same rate by Medicare, there was a greater incentive for physicians to use Hyalgan.

The whistleblower in this case, Mark Giddarie, is a former sales representative for Sanofi.  Mr. Giddarie’s portion of the settlement has not yet been determined.  When he realized the alleged fraud his former employer was committing, Mr. Giddarie took important steps to stop Sanofi.  Because of the information he provided and his refusal to be a passive participant, Mr. Giddarie helped the US government recover over $100 million.

Health care fraud remains the leading type of fraud  committed against the United States Government.  In order to help our healthcare system become and remain sustainable, we need to help programs like Medicare and Medicaid from losing money to greedy companies.  If you have information about health care fraud, contact the attorneys at Tycko & Zavareei for information on how to begin filing your case.



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