University of California Halts $12 Million Health Care Fraud Scheme

Munger, Tolles & Olson attorneys represented The Regents of the University of California in securing a preliminary injunction shutting down a fraudulent medical trial and prescription scheme that targeted UC students and cost the UC Student Health Insurance Plan $12 million.

According to the lawsuit, more than 500 UC students across multiple campuses were offered cash or job opportunities to participate in sham clinical trials for topical pain creams by a scheme of doctors, pharmacies and recruiters. The students were required to provide their UC insurance and other personal information to participate in the trial and were prescribed multiple drug kits costing thousands of dollars each.

Munger Tolles filed a complaint on behalf of the university alleging violations of the California False Claims Act, common law fraud, negligent misrepresentation and professional negligence. On April 24, 2017, Los Angeles County Superior Court Judge Mary H. Strobel issued an emergency restraining order before issuing a preliminary injunction enjoining more than a dozen defendants from participating in the scheme.

The Munger Tolles team included Hailyn J. Chen, Michael E. Soloff, Ankur Mandhania, Sara N. Taylor, Nicholas S. Dufau, Christopher M. Lynch and Trevor N. Templeton.