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Fentanyl Qui Tam False Claims Act Case filed by Richard J. Hollawell & Associates Results in $9 Million Settlement Against Specialty Pharmacies and Private Equity Firm Ownership

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Plymouth Meeting, PA, May 11, 2023

Richard J. Hollawell, of Richard J. Hollawell & Associates, along with Eric L. Young of Young Law Group, PC (“YLG”), lead counsel for Relator, Jane Doe, has announced today that private equity firm Belhealth Investment Partners (“Belhealth”), and its principals, Harold Blue, Inder Tallur, Dennis Tallur, Dennis Drislane, and their portfolio companies, Linden Care and Quick Care, have agreed to pay $9 Million to settle allegations involving False Claims Act violations in a qui tam complaint. 

After the United States Department of Justice declined to intervene in the case in 2018, YLG teamed up with Richard J. Hollawell & Associates, Kang Haggerty, LLC, , and Miller Shah, LLP, in successfully resolving claims that Defendants unlawfully distributed Subsys, a potent, rapid-onset fentanyl sublingual spray, in violation of the Controlled Substances Act, 21 CFR Sec. 1306.04(a).

YLG filed the original qui tam False Claims Act complaint against Insys Therapeutics, Inc. and Linden Care LLC, on behalf of Relator, Jane Doe, in 2016.  The federal government and seven state governments intervened in this case in 2018 only regarding the claims against Defendant Insys Theraputics, Inc. (“Insys”), the well-known defunct manufacturer of Subsys.

YLG and Kang Haggerty’s complaint alleged that between 2013 through at least 2016, mail-order specialty pharmacies Linden Care and Quick Care, under control and at the direction of Belhealth and its principals, dispensed and shipped thousands of prescriptions of Subsys nationwide to participants of Medicare, Medicaid, and TRICare for widespread off-label, illegitimate, and non-medically accepted or necessary uses, despite the known high potential for abuse of the drug. 

“The egregiousness of the defendant’s misconduct, in addition to our client’s courage and perseverance, motivated our team to aggressively pursue the case against Linden Care and Belhealth despite the Government’s decision not to intervene,” said Richard J. Hollawell.  Hollawell added, “This case serves as a tragic reminder of how greed and avarice have fueled the opioid epidemic that has devastated the lives of many Americans and their families.”

Relator’s successful resolution of the case against Belhealth and its principals has helped to provide further legal support for holding private equity firms liable for violations of the False Claims Act concerning how they exercise control and direction of their portfolio companies.  Before asserting claims against the Belhealth defendants in this case, private equity owners of healthcare companies were rarely implicated in False Claims Act suits. 

Mr. Hollawell emphasized that since filing the qui tam complaint against Linden Care and Belhealth, the Department of Justice has increased efforts to hold private equity firms accountable under the False Claims Act. 

“The good news is that the Department of Justice is now more likely to pursue cases against private equity firms when there is evidence that the firm was actively involved in the company’s day-to-day operations, knew about the fraud, but did nothing to stop it,” he explained. “I am pleased that the successful outcome of this case will provide additional legal support for these efforts and proud to have been part of it.”

About Richard J. Hollawell & Associates

Since 2001, Richard J. Hollawell has become one of the most successful personal injury attorneys in Pennsylvania, New Jersey, and New York, representing clients that were seriously injured or families that had lost a loved one due to the negligent actions of others.

He uses his experience, knowledge, and tenacity to fight hard for his clients and to see that justice is served. Mr. Hollawell handles a broad range of personal injury cases. He has been recognized nationally as a pioneer in battling against doctors and pharmaceutical companies for their role in causing the epidemic of addiction and death from opioids and other prescription drugs.

He also focuses on holding insurance companies responsible when they act in bad faith towards policyholders with his extensive work in the related field of insurance bad faith.

The Relator is represented by Young Law Group, P.C., Kang Haggerty, LLC, Richard J. Hollawell & Associates, and Miller Shah LLP. 

The case is captioned United States ex rel. Jane Doe v. Insys Therapeutics, No. 2:16-cv-7937-JLS-AS (C.D. Cal.).

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