Gregg Shapiro, formerly a leading Department of Justice (DOJ) fraud prosecutor, joined with Jeffrey Newman to form Newman & Shapiro in April 2021. For the prior 16 years, he was an Assistant United States Attorney in the United States Attorney’s Office for the District of Massachusetts. From 2013 to 2021, he served as Chief of the Affirmative Civil Enforcement Unit in that office.
In the short time he has been with Newman & Shapiro, Gregg already has successfully resolved two False Claims Act qui tam cases that he filed:
- In June 2021, on behalf of whistleblower Albermarle, LLC, Gregg filed a qui tam case alleging that pharmaceutical company Akorn Operating Company LLC caused false claims to be submitted to Medicare for a drug that was ineligible for Medicare reimbursement because its reference listed drug had switched to over-the-counter. Less than 15 months later, in September 2022, Akorn agreed to pay $7.9 million to resolve the case, and Albermarle receive a whistleblower reward of nearly $1 million.
- Also in June 2021, Gregg filed a qui tam case alleging that RGE Motor Direct Inc., a California importer, evaded tariffs on furniture and other merchandise it imported from China. The government declined to intervene in the case, but, in November 2022, less than 17 months after the case was filed, RGE agreed to pay a settlement of $3.25 million. The whistleblower, a Hong Kong national, is set to receive a whistleblower reward of 27.5% of that amount.
During his DOJ career, Gregg brought cases against pharmaceutical manufacturers and other health care companies that resulted in over $3 billion in recoveries under the False Claims Act. He also oversaw financial fraud cases and other enforcement matters that generated over $5 billion in additional recoveries. For part of 2020, he served as Special Counsel to the Special Inspector General for Pandemic Recovery, where he advised on audits and investigations of recipients of CARES Act funds. Cases that Gregg handled for the government include:
- Athena (2021): $18.25 million settlement to resolve allegations that electronic medical records provider Athena paid a variety of kickbacks to induce existing and potential customers to use its product.
- Co-pay cases (2017-20): Recovered over $1 billion from twelve pharmaceutical manufacturers, four foundations, and a pharmacy to resolve allegations that they conspired to violate the anti-kickback statute by funneling cash through the foundations to cover Medicare co-pays for patients taking the pharmaceutical companies’ drugs.
- Mylan (2017): $465 million settlement to resolve allegations that Mylan avoided paying Medicaid rebates by misclassifying EpiPen as a generic drug.
- Brigham and Women’s Hospital (2017): $10 million settlement to resolve allegations that a hospital researcher fraudulently manipulated research results to obtain NIH grants.
- Wyeth (2016): $784.6 million settlement to resolve allegations that Wyeth used inflated best prices to underpay Medicaid rebates for Protonix oral and Protonix IV.
- RehabCare (2016): $140 million in settlements with RehabCare, the nation’s largest rehabilitation therapy provider, and eight nursing home operators to resolve allegations that RehabCare caused the nursing homes to submit inflated reimbursement claims for therapy.
- Omnicare (2009-13): multiple settlements totaling $275 million to resolve allegations that Omnicare, a nursing home pharmacy, paid kickbacks to nursing homes and accepted kickbacks from Johnson & Johnson.
- Sanofi (2012): $109 million settlement to resolve allegations that Sanofi violated the anti-kickback statute by giving physicians free units of Hyalgan, a knee injection, to induce them to purchase and prescribe the product.
Gregg also supervised these financial fraud cases:
- Royal Bank of Scotland (2018): $4.9 billion settlement to resolve allegations that RBS misled investors in the underwriting and issuing of residential mortgage-backed securities.
- State Street Bank (2016): $382 million settlement to resolve allegations that State Street deceived some of its custody clients when providing them with indirect foreign currency exchange services.
Gregg twice received the Attorney General’s Award for Fraud Prevention, DOJ’s highest honor for fraud prosecutors. He also received the Department of Health and Human Services, Office of Inspector General Award for Excellence three times. In 2022, Taxpayers Against Fraud, the national association of whistleblower attorneys, awarded Gregg and others with its 2022 Public-Private Partnership Award for their work on the $233.7 million False Claims Act settlement with Mallinckrodt, a large pharmaceutical firm that evaded its obligations to pay drug rebates to state Medicaid programs.
He has argued appeals in the United States Courts of Appeal for the First, Second, and District of Columbia Circuits, and has prevailed each time.