Representative Cases - drugs distributed without doctors' orders

In 2004, Attorney Newman represented a whistleblower in a case against Polymedica Corporation and two subsidiaries, Liberty Medical Supply and Liberty Home Pharmacy. It was alleged that Liberty improperly submitted reimbursement claims for various diabetic and nebulizer products. Polymedica paid $35,000,000.

According to the Complaint, the subsidiaries based in Florida violated the False Claims Act by not obtaining a signed doctor’s order or prescription for the products and without first obtaining and maintaining documentation verifying the necessity of treatment volumes in excess of administrative guidelines. Also, it was alleged that the companies did not maintain documentary proof of an oral order from the treating physician before shipping a product. It was also alleged that there was no written doctor’s order or prescription before shipping the product and there was no written authority from the beneficiary to bill Medicare on the beneficiary’s behalf before billing Medicare.

Mr. Newman’s client, the whistleblower was Claire Schultz.

The case was entitled United States ex rel. Claire Schultz v. Liberty Home Pharmacy Corporation and Polymedica, Civil Action Number 01-11370 (D. Mass). There was also a second whistleblower Donna Ben-Barrack who filed a commensurate case.