A Texas federal court recently denied a pharmaceutical supplier’s motion to dismiss claims brought by a whistleblower under the federal False Claims Act (FCA) alleging violations of the Anti-Kickback Statute (AKS) and manipulation of Average Wholesale Pricing (AWP) rules. The complaint was filed by a pharmacist (the Relator) who previously worked for the defendant, Professional
Corporate & Commercial
The Price Isn’t Right?
In recent months, retailers have faced increased pressure from litigation related to their sales practices. While there is overlap, sales practices litigation can fall into four different buckets: pricing, data collection, auto-renewal, and “free” lawsuits. This post focuses on trends in recently filed pricing litigation.…
U.S. Supreme Court Clarifies Salary Basis Requirement for Executive Exemption – Maybe?
On February 23, 2023, the Supreme Court of the United States ruled in Helix Energy Solutions Group, Inc. v. Hewitt, that even highly compensated individuals are subject to the overtime requirements of the FLSA unless they are paid on a salary basis. Below are details of this ruling and the impact it may have on…
FTC MUSA Labeling Rule Enforcement
By Wrede Smith
The Federal Trade Commission (FTC) issued its Made in USA Labeling Rule on August 13, 2021 (the “Rule”), which has led to significantly increased enforcement in the area. Since then, the FTC has taken actions to enforce the Rule against certain companies. Below is background on the Rule itself, links to enforcement actions taken by…
Supply Chain and Logistics 101 for Retailers and Consumer Brands
In the wake of the COVID-19 pandemic, the supply chain crisis has evolved into a contentious issue that has captured the attention of both consumers and retail businesses. Specifically, there has been a significant emphasis on challenges related to international ocean transportation. Within the supply chain, ocean container transport plays a crucial role for retailers…
Event Replay: Food and Product Labeling and Sale Practices Litigation and Regulatory Update – March Radness Edition
In case you missed our March 23 webinar on regulatory and litigation developments facing the product manufacturing, food and beverage, and retail industries, a recording of the webinar and a copy of the presentation materials are now available.
If you are interested in learning more about any of the related topics covered during the…
Ophthalmic Distributor May Face $848M in Penalties for Kickbacks, False Claims Act Violations
On Feb. 28, a federal jury in the District of Minnesota found the Cameron-Ehlen Group, d/b/a Precision Lens, and its founder and owner guilty of paying kickbacks to ophthalmic surgeons in violation of the False Claims Act and Federal Anti-Kickback Statute between 2006 and 2015.
Read on for details about this case, which illustrates the…
Distributor of Ophthalmic Surgical Products Found Guilty of Paying Kickbacks and Violating the False Claims Act: May Be Liable For Up To $848 Million in Civil Damages and Penalties
On February 28, 2023, a federal jury in the District of Minnesota found the Cameron-Ehlen Group, d/b/a Precision Lens, and its founder and owner Paul Ehlen (the “Defendants”) guilty of paying kickbacks to ophthalmic surgeons in violation of the False Claims Act, 31 U.S.C. 3729 (“FCA”) and Federal Anti-Kickback Statute, 42 U.S.C. 1320a-7b(b) (“AKS”) between…
U.S. Department of Education Launches Secret Shoppers Program to Investigate Colleges and Universities
Federal Student Aid’s Office of Enforcement announced a “secret shoppers” program to evaluate a college or university’s recruitment, enrollment, financial aid and other practices. The secret shoppers program will focus on student recruitment and enrollment practices, which may include the practices of online program managers.
Read on for details about this initiative, including types of…
Silvergate, Silicon Valley Bank, Bank Receiverships in General, and Payroll Regulatory Challenges
In the wake of Silvergate’s collapse, Silicon Valley Bank entering receivership and another bank following in SVB’s footsteps, startups and other companies directly affected by these events are struggling to manage their payroll and other obligations while credit facilities are frozen. Although depositors likely will be fully protected and most businesses can expect to avoid…