Fentanyl Qui Tam False Claims Act Case filed by Young Law Group, P.C. Leads To $9 Million Settlement

PLYMOUTH MEETING, Pa., May 31, 2023 /PRNewswire/ — Eric L. Young of Young Law Group, P.C., announced today that private equity firm Belhealth Investment Partners, its principals, and their portfolio companies, Linden Care and Quick Care, have agreed to pay $9 Million to settle alleged False Claims Act violations in a qui tam complaint first filed by YLG in 2016.

After the Department of Justice declined to intervene in the case, YLG was joined by Kang Haggerty, LLC, Richard J. Hollawell & Associates, and Miller Shah, LLP, in successfully resolving claims alleging that Defendants unlawfully distributed Subsys, a potent, rapid-onset fentanyl sublingual spray, in violation of the Controlled Substances Act.

YLG filed the original qui tam complaint against Insys Therapeutics, Inc. and Linden Care LLC in 2016. The government intervened in this case in 2018 only as to the claims against Defendant Insys, the well-known defunct manufacturer of Subsys. YLG and Kang Haggerty’s amended complaint alleged that between 2013 through at least 2016, mail order specialty pharmacies Linden Care and Quick Care, under Belhealth’s control and direction, dispensed thousands of Subsys prescriptions nationwide to government healthcare programs for widespread off-label and non-medically accepted uses, despite the known high potential for abuse of the drug.

“The egregiousness of defendants’ misconduct motivated us to aggressively pursue the case against Linden Care and Belhealth despite the Government’s decision not to intervene in the case,” said Eric L. Young. Young added, “This case serves as a tragic reminder of how corporate greed has fueled the opioid epidemic that has devastated the lives of so many Americans and their families.” 

Young emphasized that, in recent years, qui tam

plaintiffs have increased efforts to hold private equity firms accountable under the False Claims Act. “Thankfully, False Claims Act plaintiffs, including the Department of Justice, may be 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 alleged fraud, but did nothing to stop it. We are pleased that the successful outcome of our case will provide additional legal support for these efforts”, Young stated.

About Young Law Group

Since 2009, Young Law Group attorneys have represented whistleblower clients in actions that resulted in recoveries of more than $3 billion on behalf of the federal and state governments. YLG specializes in the representation of whistleblowers in qui tam actions filed under the False Claims Act, as well as the whistleblower programs of the SEC, the CTFC, and the IRS. YLG Founder Eric L. Young was named as one of two “Lawyers of the Year” in 2020 by the Taxpayers Against Fraud Education Fund, the leading organization dedicated to combatting fraud against the government.

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

Contact: 

Eric L. Young 

800-590-4116 

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