Prevacid Suit Means Pain at Abbott Unit

Abbott actually lowered its estimates for Prevacid sales even after the government declined to join the current lawsuit this spring. The company warned in July that Prevacid sales will probably drop 10% this year due to "current market dynamics."

Meanwhile, sales of Lupron -- while expected to rebound in the second half of this year -- have fallen since the 2001 settlement was announced.

The Lupron investigation resembles the complaint now focused on Prevacid. In that case, federal prosecutors accused TAP of telling the government that it was charging others far more for Lupron than it really was. The government secured a $290 million criminal fine -- calling it the largest of its kind -- as part of its overall settlement with the company. Under that deal, TAP agreed to plead guilty to a charge of "conspiracy to violate the Prescription Drug Marketing Act" even while noting that it "fundamentally disagreed" with many of the government's allegations. Prosecutors also landed guilty pleas from four physicians.

Billy Tauzin, chairman of the House Energy and Commerce Committee, in 2001 singled out the TAP case as evidence of the need for sweeping industry reforms. Tauzin is a Republican from Louisiana, the same state where the new complaint is now pending against TAP.

LaCorte gathered evidence for the case while treating patients at a number of New Orleans hospitals, including some where he has served on special committees. He is pursuing similar allegations against Merck in a lawsuit that accuses the company of overbilling the government for its own popular antacid drug, Pepcid. Merck has previously dismissed the merits of that case in the media, pointing out that the government has chosen to stay out of the lawsuit.

Still, LaCorte has already won two other whistleblower cases in the past -- including a major one against Laboratory Corporation of America (LH Quote). In 1996, Laboratory Corporation agreed to pay $182 million to settle allegations that it charged the government for unnecessary lab tests. The Times-Picayune of New Orleans reported last year that LaCorte also helped secure a $3 million settlement from a Louisiana-based laboratory.

Burns, for one, expects another victory for the doctor.

"LaCorte hates fraud," he says, "and has a habit of winning" his battles.