On February 6, 2023 the U.S Attorney's Office, District of Massachusetts released to the press that OraPharma, Inc. agreed to pay $100,000 to resolve allegations of False Claims Act Violations(U.S. Attorney's Office, 2023). Account managers for OraPharma, Inc. were paid based on an incentive compensation, however some of the account managers who were paid did not disclose to the company that they also practiced as dental hygienists in offices within their sales territories, allowing the account managers to recommend OraPharma, Inc. product in which they were receiving compensation on the sales of the product (Arestin)(U.S. Attorney's Office, 2023). OraPharma, Inc. acknowledged that the account managers actions went against the company's conflicts-of-interest policies(U.S. Attorney's Office, 2023). Upon further investigations it was found that the account managers when practicing as a dental hygienist and promoting the OraPharma, Inc. product violated the Anti-Kickback Statute resulting in false claims submissions to Medicare(U.S. Attorney's Office, 2023).

Statutory Language: 3729(a)(1) provides that a person who violates the False Claims Act "is liable to the United States Government for a civil penalty ... plus 3 times the amount of damages which the government sustains because of the act of that person(Granston, 2022)." As we learned in LSH-6123-995 FRAUD & ABUSE/FALSE CLAIMS, damages are normally what is referred to as the difference between what the Government paid to the defendant, and what they would have been paid if the claim had not been false(Granston, 2022). The cost of damage and penalties can quickly add up in A False Claims Act, in which many defendants may try to claim credit for the services that were provided despite the filing of a false claim.

AGREE OR DISAGREE? BRIEF RESPONSE

U.S. Attorney's Office, D. o. (2023, February 6). OraPharma, Inc. Agrees to Pay $100,000 to Resolve Allegations of False Claims Act Violations. Retrieved from U.S. Department of Justice: https://www.justice.gov/usao-ma/pr/orapharma-inc-agrees-pay-100000-resolve-allegations-false-claims-act-violations