APRIL 5, 2012 — Law360 has published an article on Arent Fox’s recent victory in a False Claims Act case on behalf of client Akzo Nobel NV in the US District Court for the District of Massachusetts. The court dismissed the claims against Akzo Nobel, a Dutch multinational company, citing lack of jurisdiction.

In November 2007, two former employees of Organon USA Inc., a former subsidiary of Akzo Nobel, filed a suit alleging the two companies engaged in a variety of illegal activities through illegal antikickbacks. According to the complaint, the illegal scheme amounted to $421.7 million in overpayment damages for several state governments and the federal government.

In an article titled “Akzo Nobel Escapes $421M Medicaid Kickback Suit,” Law 360 reports:

A federal judge agreed on Friday to dismiss a False Claims Act case filed by employee whistleblowers against Akzo Nobel NV, the former parent of Organon USA Inc., a pharmaceutical company accused of operating a kickback scheme that helped overcharge Medicaid by $421 million.

While US District Judge Rya W. Zobel of Massachusetts federal court dismissed the claims against Akzo Nobel for lack of jurisdiction, the claims against several other defendants, including Organon, Merck& Co.and Schering Plough Corp., are still pending.

Judge Zobel’s order granting Akzo Nobel’s motion to dismiss did not include a written opinion, but Akzo Nobel’s motion claimed that because it is a Dutch company, the US court did not have jurisdiction over it.

Arent Fox attorneys D. Jacques Smith, Larri Short, Randall Brater, and Brian Schneider represented the client in this case.

For the full article, please click here (registration required).

The order dismissing the case can be found here.