The $437 million settlement

Cephalon, the Pennsylvania based international pharmaceutical company, recently settled several lawsuits with the federal government alleging that it marketed three of its drugs, Actiq, a pain killer, Gabitril, an epilepsy drug and Provigil, a sleep drug, for unapproved uses.

The settlement included several other lawsuits, both civil and criminal, including $375 million to resolve civil charges brought by Medicare and Medicaid, $50 million to resolve criminal charges and $12 million in accrued interest. Also included in the settlement are three whistleblower lawsuits brought by former Cephalon sales representatives. Their share for exposing illegal activity against the company? $46.5 million.

Whistleblowers save taxpayers money

Experts say that whistleblowers save taxpayers money by exposing fraudulent activity against the government – which ultimately affects all of us. The False Claims Act allows people who are not affiliated with the government to file actions against contractors claiming fraud against the government.

In exchange for exposing the fraud, whistleblowers, also known as relators, generally receive between 15 and 25 percent of the settlement or verdict. Although the Cephalon settlement was a particularly large amount, the fact is that many whistleblower, or Qui Tam, settlements and verdicts are in the multi-million dollar range.

Have you witnessed illegal activity?

If you’ve witnessed illegal activity against the government and considering bringing a Qui Tam lawsuit, there are certain things of which you should be aware. First and foremost, don’t discuss the matter with anyone until seeking the advice of an experienced Qui Tam attorney. Qui Tam lawsuits specify that the first person to the courthouse is the one who can file the lawsuit. So, discussing the matter with co-workers, friends or your boss may not be a good idea. In addition, the False Claims Act prohibits your employer from taking an adverse employment action against you for exposing the illegal activity such as demotion or termination. So, you don’t need to fear for your job. Click here, to find out more about Qui Tam cases. Click here to speak with an experienced Qui Tam attorney. Consultations are free, without obligation and are strictly confidential.