Judge Rules Tamiflu-Maker Hoffman-La Roche Must Answer Whistleblower Fraud Claims
A federal judge in Maryland ruled that Hoffman-La Roche (RHHBY) must respond to whistleblower allegations of falsifying claims regarding Tamiflu's effectiveness and inducing the government to stockpile the drug. The lawsuit, filed under the False Claims Act, could lead to penalties exceeding $4 billion due to Roche's alleged misleading claims that influenced government purchases. Despite warnings from the FDA about unsupported claims, Roche received over $1.4 billion from the government between 2005 and 2009 for Tamiflu stockpiles. The case highlights the importance of safeguarding taxpayer interests against corporate fraud.
- Judge's ruling allows the whistleblower case to proceed, presenting Roche's practices under scrutiny.
- Potential for significant recovery under the False Claims Act, which may deter future corporate misconduct.
- Roche faces a possible judgment exceeding $4 billion due to alleged fraud.
- Historic government contracts for Tamiflu totaling over $1.4 billion are now under threat of recourse.
BALTIMORE, Oct. 1, 2020 /PRNewswire/ -- Tamiflu-maker Hoffman-La Roche (OTCMKTS – RHHBY) must answer to whistleblower charges that it falsified claims of Tamiflu's effectiveness in fighting influenza and fraudulently induced the federal government to stockpile millions of doses for a feared flu pandemic, a federal judge in Maryland ruled Monday.
In rejecting Roche's request to dismiss the lawsuit filed under the False Claims Act, U.S. District Judge George L. Russell III ruled that Roche's marketing and alleged false statements about the efficacy of Tamiflu (oseltamivir) as alleged by whistleblower Dr. Thomas Jefferson were material and capable of influencing the government's purchasing decisions.
According to the lawsuit, Roche falsified scientific conclusions and mounted a high-powered marketing and lobbying campaign to win government contracts. In fact, the U.S. Food and Drug Administration previously warned Roche that its data did not support those claims and that such statements were misleading. Despite that, federal and state governments spent more than
"We were confident that the court would deny the motion and are excited to present these compelling facts to a jury," said whistleblower lawyer Clayton Halunen of Minnesota-based Halunen Law. "We are particularly pleased that the court applied the proper standard for materiality—whether a defendant's false statements are capable of influencing the government's payment decisions."
Dr. Jefferson, the whistleblower, is a public health researcher affiliated with the respected global Cochrane Collaboration research network. He began questioning Tamiflu's effectiveness in 2009 and spearheaded efforts to have the company release underlying clinical study data. After finally obtaining the data in 2013, Dr. Jefferson concluded that the clinical data did not support Roche's claims.
"The False Claims Act has important safeguards to protect taxpayers and prevent unscrupulous corporations from making false claims to win government contracts," said trial lawyer Chris Gadoury of The Lanier Law Firm in Houston. "This case is more important than ever as our government responds to the desperate need to stockpile protective equipment and supplies for the Covid-19 pandemic."
The case is United States of America, ex rel. Thomas Jefferson v Hoffman-La Roche Inc. et al. In the U.S. District Court for the District of Maryland. Case No. 14-CV-03665.
About the Lanier Law Firm
For more than 30 years, the men and women at the Lanier Law Firm have worked tirelessly, throughout the United States, to find unique and effective solutions for their clients. More than 60 skilled attorneys practice law in a broad array of areas, including business litigation, pharmaceutical litigation, asbestos exposure, oil and gas litigation, personal injury, and defective and dangerous products, among others. Named an Elite Trial Law Firm by The National Law Journal, the Lanier Law Firm has offices in Houston, New York and Los Angeles. To learn more about Mark Lanier and the Lanier Law Firm, visit http://www.lanierlawfirm.com.
About Halunen Law
With offices in Minneapolis, Chicago and Phoenix, Halunen Law offers experienced legal representation to employees and whistleblowers across the country. Halunen Law has achieved a reputation as a fearless, tenacious and successful plaintiffs' law firm, with a laser focus on achieving justice for its clients as well as meaningful social change. The firm's qui tam / whistleblower practice group specializes in actions under the federal and state False Claims Acts and other whistleblower laws. For more information, visit http://www.halunenlaw.com
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SOURCE Lanier Law Firm
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