In a federal court ruling for a qui tam whistleblower case, Peggy Ryan, an Endo Pharmaceuticals employee who exposed the company for promoting their drug Lidoderm off-label, is entitled to approximately $33 million dollars from the company’s settlement with the government.
Of the $171.9 million settlement Endo Pharmaceuticals agreed to pay, the government receives approximately $140 million. U.S. District Judge Robert F. Kelly, of the Eastern District of Pennsylvania ordered that 24 percent should go to relator Peggy Ryan. The government argued that Ryan should only receive 19 percent of the federal recovery. However, Kelly rules that she was entitled to 24 percent as a result of gathering incriminating information about the company’s wrongdoings over a ten year period of time.
In addition to providing vital information about high level sales managers convincing doctors to promote the drug for off-label uses, Ryan wore a wire over the course of a year, recording more than 200 hours of conversations about the illegal marketing of Lidoderm. As a result of these recordings, investigators learned that 97 to 98 percent of Lidoderm’s prescriptions were off-label.
Ryan also gathered a significant amount of additional evidence that contributed to an 18-minute documentary summarizing the case. This included promotional sales material, off-label studies, logs that recorded the amount of off-label materials given to physicians, and call plans that required sales representatives to promote Lidoderm off-label to physicians.
The decision in this case to grant the whistleblower close to the maximum amount given may encourage other people who have incriminating evidence against a corporation to come forward.
If you believe that your employment is in jeopardy or adverse action has been taken against you as a result of speaking out against your company, contact the Philadelphia whistleblower lawyers at Sidney L. Gold & Associates. Our experienced Philadelphia qui tam lawyers are dedicated to protecting the rights of whistleblowers and their families. Call 215-569-1999 to set up a free consultation or contact us online. We serve clients throughout New Jersey and Pennsylvania.
