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Fordham Intellectual Property, Media and Entertainment Law Journal

2015

Patents

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The New Plague: False Claims Liability Based On Inequitable Conduct During Patent Prosecution, Gregory Michael, William J. Newsom, Matthew Avery Jun 2015

The New Plague: False Claims Liability Based On Inequitable Conduct During Patent Prosecution, Gregory Michael, William J. Newsom, Matthew Avery

Fordham Intellectual Property, Media and Entertainment Law Journal

In January 2009, Amphastar Pharmaceuticals filed a first of its kind qui tam suit on behalf of the federal government and several states alleging that its competitor, Aventis Pharma, violated the Federal False Claims Act (FCA) when it fraudulently acquired a patent and then overcharged the government for its patented drug. By utilizing a fraudulently acquired patent to elevate the price of Lovenox, a drug for treating deep-vein thrombosis, Amphastar alleged that Aventis had overcharged the government for every Lovenox pill purchased with government funds, including all prescriptions funded in part by Medicare or other federal insurance programs. The FCA …