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The False Claims Act

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    Assignment 1 :

    Weightlessness and Serbians-Solely Strayed University Professor: Aground Carter, J. D. LEG 500- Law, Ethics, and Corporate Governance Due Date: July 17, 2014 Weightlessness are people who decide to report unethical or illegal activities, usually activities under the control of their employers. They may be working for private companies, nonprofit organizations, or for the government. Weightlessness may disclose information inside or outside of their organizations – to supervisors, regulators, or to the media. Halberd & Inguinal, 2012) An example of weightlessness occurred in 2005 when Joe Storm a former Utah area manager for Johnson & Johnson (J&J) unit Socio brought a quiz tam lawsuit in the Northern District of California against and its subsidiary Socio, Inc. Storm alleged that illegally marketed Airspeeds, Invent and Entrance. However, the federal government intervened in the case in 2009. The government charged the company with promoting the drugs for uses not approved by the FDA, and for paying kickbacks to doctors and pharmacists who convinced patients to prescribe to the drugs.

    Under the quiz tam provisions of the False Claims Act, weightlessness who expose fraud by revealing information not publicly accessible are entitled to a portion of any money recovered by the U. S. Government. According to McIntosh (n. D), the U. S. Department of Justice announced on November 4, that’d J and its subsidiaries agreed to pay more than $2. 2 billion to settle civil and criminal charges regarding off-label marketing, kickbacks, and false statements made about three of its drugs. Mr..

    Storm will receive $28 million of the total civil recovery. Joe Storm was definitely justified n reporting actions because in the case, Storm describes how Entrance was approved by the FDA to treat congestive heart failure among hospital and emergency room patients who also had fluid in their lungs. However, J’s sales managers realized that half of Anteater’s sales were coming from outpatient business, in which doctors injected heart failure patients in non-emergency settings as part of their ongoing, routine care.

    This routine was not approved by the FDA and J had no data supporting the drug for that type of use. Continued to could increase the use of Entrance in the unapproved, “off-label” on-acute settings, which forecasted an increase in sales by $330 million to $930 million (Edwards, J. 2011). J did not care about the patients they were treating, they only cared about the bottom line of making money. Although the drug usage was not approved by FDA, continued to use it on the patients.

    Storm case against J is extremely brave because it exposed him as well as saved lives in the hospital. It was ethnically the correct thing to do because if he did not report J the side effects of what can possibly happen to the patients can be more damaging then one can possible imagine. The Serbians-Solely Act of 2002 is mandatory to all organizations, large and small and they must comply with the rules and regulations. The act was passed by U. S. Congress in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations.

    The Serbians-Solely Act (SOX) mandated strict reforms to improve financial disclosures from corporations and prevent accounting fraud. The rules and enforcement policies outlined by the SOX Act amend or supplement existing legislation dealing with security regulations (Investigated, 2014). Joe Storm is retorted under the SOX Act because did not disclose their financial gains from administering the unapproved drug usage on hospital patients. Although practice was unethical, it was also unlawful.

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    The False Claims Act. (2018, May 22). Retrieved from

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