By the Constantine Cannon Whistleblower Team 

On May 9, the government announced that Assertio Therapeutics Inc., (formerly Depomed Inc.) (“Assertio”), agreed to pay $3.6 million to resolve False Claims Act allegations stemming from its marketing of Lazanda, its transmucosal immediate-release fentanyl (TIRF) drug. This case was initiated by whistleblowers.[1]

Lazanda is a nasal spray solely approved by the FDA for patients with breakthrough cancer pain who are receiving and are tolerant to opioid therapy. Assertio allegedly geared its marketing toward pain specialists who were prescribing high volumes of TIRF products. Several of these pain specialists were flagged or later indicted.

The government alleged that Assertio caused the submission of false claims to the Medicare and TRICARE programs for patients who did not meet the prescription requirements. The government further alleged that Assertio placed high-volume TIRF prescribers on its speakers’ bureau and advisory boards and developed a program to ensure Lazanda prescriptions would be approved by insurance companies.

Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) commented: “Violations of the False Claims Act such as the illegal prescribing practices alleged in this settlement are especially egregious considering the opioid epidemic. HHS-OIG will continue to work with our law enforcement partners to ensure health care providers and corporations involved in schemes that threaten patient safety are held accountable.”

False Claims Act Whistleblowers

The settlement resolves claims under the qui tam, or whistleblower provisions, of the False Claims Act, allowing private parties to file lawsuits on behalf of the United States for false claims and share up to 30% of any monetary recovery.

The whistleblowers in this case are Noelle Webb and Nicole Novellino, who previously worked as sales representatives at Assertio. They will receive a $657,000 share of the total settlement.

Whistleblower partner Marlene Koury explained: “Whistleblowers who expose improper opioid marketing protect public health and taxpayer dollars. This  case demonstrates that the FCA remains one of the most powerful tools to hold accountable those who attempt to profit from pain and undermine a system meant to heal.”

Our Firm Helps False Claims Act Whistleblowers

If you would like more information on what it means to be a whistleblower, believe you have information relating to False Claims Act violations or healthcare fraud, please contact us so we can connect you with a member of the experienced Constantine Cannon whistleblower lawyer team for a free and confidential consultation.

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[1] See Office of Public Affairs, Department of Justice Press Release

Read Assertio to Pay $3.6M in False Claims Act Settlement over Fentanyl Marketing Practices at constantinecannon.com