WebMD Health (WBMD)

 

The Federal False Claims Act imposes liability on any person or entity who, among other things, knowingly presents, or causes to be presented, a false or fraudulent claim for payment by a Federal healthcare program. The whistleblower (or “qui tam”) provisions of the False Claims Act allow a private individual to bring actions on behalf of the Federal government alleging that the defendant has submitted a false claim to the federal government and to share in any monetary recovery. After the filing of a qui tam suit, the Federal government must determine whether it will intervene and control the case and, if it does not, the private individual may pursue the claim. In addition, various states have enacted false claim laws analogous to the Federal False Claims Act, and many of these state laws apply where a claim is submitted to any third-party payor and not merely a federal healthcare program. When an entity is determined to have violated the False Claims Act, it may be required to pay up to three times the actual damages sustained by the government, plus civil penalties. It is not clear whether there is a basis for the application of the False Claims Act to the types of services that WebMD provides.

 

We are aware that on February 10, 2009, the United States District Court for the District of Massachusetts unsealed portions of a qui tam complaint that names several companies as defendants including WebMD. United States ex rel. v. Amgen, et.al. Civil Action No. 06-10972WGY. The allegations in the complaint appear to relate principally to alleged off-label promotion of two prescription drugs by a pharmaceutical manufacturer. The action does not appear to focus on WebMD. WebMD has not been served with any legal process with respect to this action and has been informed that the Federal government has not yet determined whether it will intervene as to any of the claims in the complaint or against any defendant. WedMD believes that it complies with the rules and regulations applicable to the provision of its services.

 

 

The Federal False Claims Act imposes liability on any person or
entity who, among other things, knowingly presents, or causes to
be presented, a false or fraudulent claim for payment by a
Federal healthcare program. The whistleblower (or “qui
tam”) provisions of the False Claims Act allow a
private individual to bring actions on behalf of the Federal
government alleging that the defendant has submitted a false
claim to the federal government and to share in any monetary
recovery. After the filing of a qui tam suit, the Federal
government must determine whether it will intervene and control
the case and, if it does not, the private individual may pursue
the claim. In addition, various states have enacted false claim
laws analogous to the Federal False Claims Act, and many of
these state laws apply where a claim is submitted to any
third-party payor and not merely a federal healthcare program.
When an entity is determined to have violated the False Claims
Act, it may be required to pay up to three times the actual
damages sustained by the government, plus civil penalties. It is
not clear whether there is a basis for the application of the
False Claims Act to the types of services that WebMD provides.

 

We are aware that on February 10, 2009, the United States
District Court for the District of Massachusetts unsealed
portions of a qui tam complaint that names several companies as
defendants including WebMD. United States ex rel. v. Amgen,
et.al. Civil Action
No. 06-10972WGY.
The allegations in the complaint appear to relate principally to
alleged off-label promotion of two prescription drugs by a
pharmaceutical manufacturer. The action does not appear to focus
on WebMD. WebMD has not been served with any legal process with
respect to this action and has been informed that the Federal
government has not yet determined whether it will intervene as
to any of the claims in the complaint or against any defendant.
WedMD believes that it complies with the rules and regulations
applicable to the provision of its services.