California has recovered more than $1 billion because of whistleblowers

SAN FRANCISCO, CA – Since the California legislature adopted the state False Claims Act in 1987, California has recovered more than $1 billion in civil settlements of cases initiated by whistleblowers, including “qui tam” (whistleblower) cases brought by Phillips & Cohen.

Under the California False Claims Act — which is modeled after the federal False Claims Act — whistleblowers may sue any person, business or other entity that is committing fraud against a local or state government or agency, is overcharging the government or agency or is submitting other false bills.

If any funds are recovered as a result of the whistleblower’s “qui tam” lawsuit, the whistleblower is entitled to 15 percent to 33 percent of the recoveries.

Here is a list of defendants and the amounts they paid to settle cases brought under the California False Claims Act:

  • Quest Diagnostics – $241 million
  • Bank of America – $187.5 million
  • Los Angeles Department of Water & Power – $160 million (Phillips & Cohen case)
  • Eli Lilly – $112 million
  • Sandoz Inc. – $75 million
  • James Jones, Tyco International, et al – $60 million (Phillips & Cohen case)
  • Abbott Laboratories – $52 million
  • Laboratory Corporation of America – $49.5 million
  • GlaxoSmithKline – $46 million (Phillips & Cohen case)
  • Hanson Building Materials – $42.2 million
  • Pfizer Inc. – $37.5 million (Phillips & Cohen case)
  • Toshiba Corp. – $30 million (Phillips & Cohen case)
  • Schering Plough Corp. – $21.3 million
  • Lazard Frere – $9 million (Phillips & Cohen case)
  • Westcliff Medical Laboratories Inc. – $5.36 million
  • WR Grace and Baker & Taylor – $4 million (Phillips & Cohen case)
  • Primex Clinical Laboratories – $750,000
  • Physicians Immunodiagnostic Laboratory Inc. – $600,000
  • Whitefield Medical Laboratory Inc. – $400,000
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