Skip to Content

Texas, a Leader in Whistleblower Lawsuits

On October 30, Texas Attorney General Greg Abbott announced that the state had won $19.9 million in a False Claims Act settlement from  Novartis for its unlawful marketing of an exczema treatment for infants, in order to bill medicaid.  Texas' largest single recovery came earlier this year, in a whistleblower action brought by Allen Jones against Johnson & Johnson.  Jones alleged that Johnson & Johnson had marketed the antipsychotic drug Risperdal for unapproved purposes, particularly for the treatment, in order to bill medicaid.  The whistleblower case settled in the middle of trial for $158 million.  The information developed in both of these cases is expected to lead to vary large recoveries by other state governments, and by the federal governments well, since the unlawful marketing was nationwide.  Tragically, in both of these cases children were exposed to serious side effects from medication that had not been proven effective for them.

It is not an accident that Texas was the first state to win a recovery in both of these cases, even though other state medicaid programs had paid substantial amounts for the same medications.  Since at least 2007, The Texas Attorney General's office has followed a policy of aggressively pursuing false claims cases involving the medicaid system.  The Texas Civil Medicaid Fraud division has grown from  seven to 33 lawyers in the past few years.  According to Public Citizen, a watchdog group,  Texas has recovered more than that $1.2 billion over the last decade in actions against drug manufacturers and other players in the health care industry, the largest amount for any state.

Texas's decision to aggressively  pursue False Claims Act cases deters drug manufacturers from engaging in unlawful marketing, and is also good fiscal practice:  Every dollar the state recovers reduces the cost to taxpayers of its Medicaid program.  The budget expense of the additional  staff attorney position  has paid for itself many times over.

Texas' success in these actions has resulted in both improved medical care for its citizens,  and lower costs for its taxpayers.  We are hopeful that other states will follow its example.

If you have discovered evidence of government fraud, contact an experienced False Claims Act attorney before blowing the whistle. You may be entitled to a substantial reward and the legal protections afforded to whistleblowers under state and federal laws. The attorneys of Berger & Montague are nationally recognized experts in Whistleblower/Qui Tam actions with over a decade of experience pursuing these complex fraud cases. For more information or to schedule your confidential consultation, use the form on this page or call us at 1-800-424-6690.

Contact For More Information (Green)