FOR IMMEDIATE RELEASE bdietz@waterskraus.

com

Contact: Brandy Dietz (800) 226-9880

PARTNERS C. Andrew Waters (CA, DC, NC, TX) Peter A. Kraus (TX, VA) Charles S. Siegel (TX) Troyce G. Wolf (NY, TX) Michael L. Armitage (CA, LA) B. Scott Kruka (TX) Leslie C. MacLean (TX)

California Insurance Commissioner To Pursue Healthcare Fraud Case

Allegations Against Bristol-Myers Squibb Prompt Groundbreaking Intervention LOS ANGELES March 18, 2011California Insurance Commissioner Dave Jones announced today that the California Department of Insurance will intervene in a case alleging that Bristol-Myers Squibb provided perks and kickbacks to induce doctors to write prescriptions for certain drugs. The lawsuit was filed under seal in March 2007 under the private citizen provision of the California Insurance Code, which specifies that any interested parties, known as relators, may bring a suit on behalf of themselves and the State of California. In this case, the initial relator was Michael Wilson, a former territory business manager for Bristol-Myers Squibb. Concerned about his former employers sales practices, Mr. Wilson consulted the law firm of Waters, Kraus & Paul the West Coast practice of Waters & Kraus, LLP. In particular, he described provisions of gifts, expensive meals, and speakers fees routinely given to high-prescribing doctors. We recognized immediately that what he was complaining about was actionable, not only under the federal false claims act, but also under section 1871.7 of the California Insurance Code, said Loren Jacobson, a partner with Waters & Kraus. Waters, Kraus & Paul filed the suit on behalf of Mr. Wilson, who later brought former Bristol-Myers Squibb employees Lucius and Eve Allen into the case. Mr. Allen was a cardiovascular metabolic risk specialist who dealt with such well-known drugs as Plavix and Pravachol, while part of Ms. Allens job as an integrated health manager involved obtaining formulary status for Bristol-Myers Squibb drugs. Mr. Wilsons federal false claims act case was one of several resolved pursuant to a Department of Justice settlement of $328 million. The state insurance fraud case will be continued . . .

Charles E. Valles (TN, TX) Paul C. Cook (CA) Gary M. Paul (CA) Michelle Whitman (TX) Kyla Gail Cole (TX) John S. Janofsky (CA, DC) Michael B. Gurien (CA) Scott L. Frost (CA, GA, IN, KY, TX) Greg W. Lisemby (TX) Loren Jacobson (NY, TX) ASSOCIATES Joy Sparling (IL) Kevin M. Loew (CA) Julie L. Celum (TX) Dimitri N. Nichols (CA) Benno Ashrafi (CA) Mark Bratt (CA) Demetrios T. Zacharopoulos (MD) Susannah B. Chester (TX) Jillian Rice-Loew (CA) Cindy Young (CA) Melanie J. Garner (DC, MD, NJ, NY) Gibbs C. Henderson (TX) Tae Kim (CA) Carrie B. Waters (TX) Laurel Halbany (CA) Katherine N. Williams (CA, TX) Joanna A. Hojdus (FL, TX) Mark Linder (CA, TX) Jason Marks (CA) Banafsheh Saifollahi (MD) Jennifer L McIntosh (CA) Andrew Seitz (CA) Elizabeth A. Davis (CA) Peter Klausner (CA) OF COUNSEL Kevin E. Oliver (TX) William Galerston (IL, TX) Randall L. Iola (IL, OK, TX) George G. Tankard III (DC, MA, MD, PA, TX) Jonathan A. George (CA, TX, VA) Wm. Paul Lawrence II (LA, TX, WA) David Bricker (CA)

WATERS, KRAUS & PAUL ATTORNEYS AND COUNSELORS LOS ANGELES: 222 NORTH SEPULVEDA BOULEVARD SUITE 1900 EL SEGUNDO, CALIFORNIA 90245 TEL 310 414 8146 FAX 310 414 8156 SAN FRANCISCO: 711 VAN NESS AVENUE SUITE 220 SAN FRANCISCO, CALIFORNIA 94102 TEL 800 226 9880 FAX 214 777 0470 BALTIMORE: 315 NORTH CHARLES STREET BALTIMORE, MARYLAND 21201 TEL 410 528 1153 FAX 410 528 1006 DALLAS: 3219 McKINNEY AVENUE DALLAS, TEXAS 75204 TEL 214 357 6244 FAX 214 357 7252

tried by a Waters, Kraus & Paul team led by two-time Consumer Attorneys Association of Los Angeles trial lawyer of the year Gary Paul in conjunction with the commissioners General Counsel Adam Cole, Assistant Chief Counsel Dick Krenz, and Senior Staff Counsel Tony Celaya. As Ms. Jacobson explained, the California Insurance Code statute under which the case was filed was initially drafted to address workers compensation and automobile insurance fraud, but was broadened in the late 90s to target fraud against private health insurance companies. This is the first time the insurance commissioners office has ever intervened in a healthcare fraud case against a large pharmaceutical company for these types of practices. Its groundbreaking, said Ms. Jacobson. I laud the insurance commissioner for using the statute as a tool to address healthcare fraud. Not only are these practices raising the cost of drugs for all of us, but theyre undermining the relationship of trust between doctor and patient. I think the insurance commissioners message is clear: This has to stop. This is no longer how its going to work in California.

About Waters, Kraus & Paul Waters, Kraus & Paul is the West Coast practice of Waters & Kraus, LLP a nationally recognized plaintiffs' firm concentrating on complex product liability and personal injury/wrongful death cases. The firm's diverse practice includes toxic tort litigation (mesothelioma-asbestos), qui tam (whistleblower) cases, and pharmaceutical and medical product liability litigation, among others. With offices in California, Texas, and Maryland, Waters & Kraus, LLP, has litigated cases in jurisdictions across the United States on behalf of individuals from all 50 states, as well as foreign governments.