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Qui Tam

False Claims Act - Qui Tam

Current developments in whistleblower lawsuits brought under the False Claims Act, a law designed to combat fraud against the government.
By Phillips & Cohen LLP

Post Frequency: 1.9/day

Last Entry: March 31, 2011 at 17:41:00

U.S. joins suit against Community Health Systems

Posted on March 12, 2009
The Dept. of Justice announced on March 6 that it has intervened in a whisleblower suit against Community Health Systems Inc. (CHS) and three of its hospitals in New Mexico.The suit alleges that CHS and the hospitals violated the False Claims Act by knowingly causing to be presented to the United States false claims for federal matching Medicaid funds...

WV hospital settles Medicaid suit

Posted on March 12, 2009
Cornerstone Hospital of Huntington, WV, will pay $690,000 to settle a whistleblower suit brought under the qui tam provisions of the False Claims Act, according to a press release issued by the U.S. Attorney's Office.Two former employees alleged that the hospital, a Long-Term Acute Care Hospital (LTCH), submitted false and fraudulent claims to Medicare...

Whistleblowers not adequately protected from retaliation, GAO report concludes

Posted on March 12, 2009
A new report from the U.S. General Accountability Office concludes that whistleblowers who report illegal activities are not adequately protected from retaliation by their employers.The report, Whistleblower Protection Program: Better Data and Improved Oversight Would Help Ensure Program Quality and Consistency, found these problems stem largely from a lack of resources and proper tracking of complaints, as well as a complicated patchwork of regulations that aim to protect whistleblowers...

Weill Cornell Medical College settles research grant suit

Posted on March 12, 2009
Weill Medical College of Cornell University will pay $2.6 million to resolve charges it violated the False Claims Act.The suit, originally brought by a whistleblower, alleged that the college defrauded the government in connection with research grants awarded by the National Institutes of Health and the Dept...

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U.S. joins whistleblower suit against Forest Labs

Posted on February 26, 2009
The U.S. Dept. of Justice has joined a whistleblower lawsuit alleging violations of the False Claims Act by Forest Laboratories.The suit, which originated in complaints filed by two private citizens under the qui tam provisions of the Act, alleges that the company marketed antidepressants for unapproved pediatric uses and paid kickbacks to physicians...

U.S. joins FCA suit against drug company accused of off-label marketing

Posted on February 19, 2009
The U.S. Dept. of Justice announced that it has joined two whistleblower suits against drug manufacturer Scios Inc. and its parent company, Johnson & Johnson Inc. The suits, brought under the qui tam provisions of the False Claims Act, allege that the companies engaged in off-label marketing of the drug Natrecor...

Global shipping company settles qui tam suit alleging FCA violations

Posted on February 17, 2009
APL Limited, a global shipping company, has agreed to pay $26.3 million to resolve allegations that it submitted false claims to the United States in connection with contracts to ship cargo to support U.S. troops in Iraq and Afghanistan.A press release from the U...

Diabetes equipment supplier faces allegations it defrauded government

Posted on February 17, 2009
Liberty Medical, a mail-order supplier of diabetes equipment based in Florida, is the subject of a qui tam suit filed under the False Claims Act, according to a report in the Palm Beach Post.Medco Health Solutions, Liberty's parent company, disclosed in an SEC filing that it had received a subpoena from the Dept...

AT&T unit settles FCA E-Rate suit

Posted on February 17, 2009
AT&T Technical Services Corp. has agreed to pay the United States more than $8.2 million to resolve allegations that it violated the False Claims Act in connection with the federal E-Rate program, according to a Dept. of Justice press release.The E-Rate program is administered by the Federal Communications Commission and provides funding for needy schools and libraries to connect to and utilize the Internet...

California construction company settles FCA suit

Posted on February 05, 2009
Mercer-Fraser, a construction company based in Eureka, California, has agreed to settle a qui tam suit for $1.3 million.The suit alleged that the company falsified information about its business type and size in order to qualify for preferences in federal construction work under the U...

Canadian company settles defective body armor allegations

Posted on February 05, 2009
Barrday Inc. and two related companies have agreed to pay the United States more than $1 million to resolve allegations that they violated the False Claims Act in connection with their role in the weaving of fabric used in the manufacture and sale of defective bullet-proof vests...

Jury finds company overcharged IRS on computer repairs

Posted on February 05, 2009
A federal jury in Baltimore has found that John Rachel and companies controlled by him are liable under the False Claims Act defrauding the IRS.Rachel used shell companies to inflate the cost of repairing IRS laptop computers and is required to repay $428,532.

U.S. recovers $19 million from AMEC Construction Management in FCA case

Posted on February 05, 2009
AMEC Construction Management has paid the federal government over $19 million to resolve allegations of fraud, false claims and kickbacks on four General Services Administration (GSA) construction contracts.The United States had brought suit to recover damages and penalties under the False Claims Act, the Anti-Kickback Act and common law theories for false bond reimbursement claims submitted by AMEC to the GSA and bond premium kickbacks paid by the company?s bond broker to AMEC's United Kingdom parent company.

Minnesota considers state False Claims Act

Posted on January 20, 2009
A bill to establish a state False Claims Act has been introduced in the Minnesota senate.Senate Bill 82 is described by its supporters as needed to help save the state millions by encouraging those working for state contractors to report rip-offs, according to the Star Tribune...

Eli Lilly settles off-label marketing suit for $1.415 billion

Posted on January 20, 2009
Eli Lilly and Company has agreed to plead guilty and pay $1.415 billion for promoting its drug Zyprexa for uses not approved by the Food and Drug Administration (FDA), according to the U.S. Department of Justice.Four separate lawsuits were brought under the qui tam provisions of the False Claims Act, alleging that Lilly marketed its antipsychotic drug Zyprexa for uses that had not been approved by the FDA...

ACLU challenges FCA seal provisions

Posted on January 20, 2009
The American Civil Liberties Union has filed a complaint in the U.S. District Court for the Eastern District of Virginia challenging the constitutionality of the seal provisions of the False Claims Act.The suit contends that the seal provisions, which keep the complaint from being made public and keep the whistleblower from discussing the complaint until the Justice Department decides whether to intervene, can keep a fraud secret for years and prevent the public from learning about threats to health and safety.

Alabama hospice company settles whistleblower suit

Posted on January 20, 2009
SouthernCare, a hospice company based in Birmingham, Alabama, has agreed to pay $24.7 million dollars to settle a False Claims Act suit brought by two nurses formerly employed by SouthernCare.The U.S. Dept. of Justice announced the settlement, which resolves allegations that the company, which operates at 99 locations in 15 states, purposefully enrolled ineligible patients for hospice care, which is restricted to patients who have six months or less to live.

Supreme Court grants cert in FCA suit

Posted on January 20, 2009
According to the scotusblog the U.S. Supreme Court will consider whether a qui tam plaintiff in a False Claims Act suit must file a notice of appeal within 30 days or whether the 60 day limit that applies to the federal government also applies to a qui tam plaintiff...

NY hospitals accused of drug rehab fraud

Posted on January 12, 2009
Seven hospitals in New York state allegedly defrauded Medicaid of $50 million in connection with drug treatment programs.Both the New York State Attorney General and the U.S. Attorney's Office in Brooklyn have filed suits alleging that the hospitals admitted patients who weren't addicts into unlicensed treatment programs, paid kickbacks for referrals, and lured homeless people into medical beds with beer...

Teva Pharmaceuticals pays $7 million to settle Mass. FCA suit

Posted on January 08, 2009
Teva Pharmaceuticals and its subsidiary, Ivax Pharmaceuticals, paid $7 million to the Massachusetts Medicaid program to settle a False Claims Act case.Teva and Ivax are among 13 drug makers sued in 2003 by the state for allegedly inflating prices they reported to national pharmaceutical price-reporting services...

Ad agency settles FCA suit involving Army ad campaign

Posted on January 08, 2009
Leo Burnett, a Chicago advertising firm, has agreed to pay the United States $15.5 million to settle a False Claims Act whistleblower suit.The settlement resolves allegations that Leo Burnett improperly billed the Army while developing a recruiting website and for advertising under the "Army of One" multimedia advertising campaign...

Off-label whistleblower suit dismissed

Posted on December 29, 2008
A whistleblower suit alleging off-label promotion of a blood thinning drug has been dismissed by a federal judge in Chicago.The suit, filed under the qui tam provisions of the federal False Claims Act, alleged that Aventis promoted off-label uses of Lovenox, thereby inducing doctors and hospitals to submit fraudulent Medicare claims...

Yale will pay $7.6 million to resolve allegations of research grant mischarging

Posted on December 29, 2008
Yale University has agreed to pay $7.6 million to resolve allegations that it violated the False Claims Act and common law by mismanaging federally-funded research grants.The grant awards were made by approximately 30 different federal agencies, including the Department of Health and Human Services, the National Science Foundation, the Department of Energy, the Department of Defense, and the National Aeronautics and Space Administration...

Texas sleep clinic settles FCA suit

Posted on December 29, 2008
HMS Diagnostics has paid over $550,000 to settle allegations that it violated the federal False Claims Act, according to a press release from the U.S. Attorney's Office in Houston.The government alleged that the HMSD, an independent diagnostic testing facility specializing in sleep disorders, violated Medicare rules and regulations by using uncertified technicians to administer polysomnograph sleep tests.

NY State recovers $551 million in improperly paid Medicaid funds

Posted on December 19, 2008
New York Governor David Paterson and State Medicaid Inspector General James Sheehan announced that the state recovered $551 million in funds lost to Medicaid fraud and abuse.The federal government requires states to root out Medicaid abuses, and New York had agreed to find $215 million of wrongdoing, but in fact recovered more than twice the targeted amount...

KPMG survey finds business pressures lead to corporate misconduct

Posted on December 18, 2008
a href="http://www.us.kpmg.com/"KPMG LLP/a, an audit, tax and advisory firm, has released a survey that suggests that ethics in companies and organizations may be trumped by pressures to succeed.br /br /74 percent of the 5,000 U.S. workers surveyed said that they had personally observed misconduct within their organizations within the last 12 months...

Aerospace company settles qui tam suit

Posted on December 09, 2008
L-3 Vertex Aerospace has paid the government $4 million to resolve allegations that the company overcharged the government on an Iraq war contract.The False Claims Act suit, which was originally filed by a former employee as a whistleblower suit, accused the company of submitting false and inflated claims for hours worked maintaining helicopters at camp Taji, Iraq...

Annual report on anti-fraud efforts in health care released

Posted on December 04, 2008
The Health Care Fraud and Abuse Control Program, a collaboration between the Justice Department and the Dept. of Health and Human Services has released its annual report.The report shows that the government won or negotiated $1.8 billion in settlements in FY 2007 and paid out $122...

Tennessee hospitals settle FCA suits

Posted on December 04, 2008
Two Tennessee hospitals, Jackson Madison General Hospital and Milan General Hospital, have agreed to pay the federal government $2.6 million and $5.3 million respectively to settle false claims allegations.The U.S. Attorney for the Western District of Tennessee announced the resolution on December 1st...

Medical transcription service to pay$6.6 million to resolve qui tam suit

Posted on December 04, 2008
MedQuist Inc., a medical transcription service provider based in New Jersey, will pay $6.6 million to resolve False Claims Act allegations, the U.S. Dept. of Justice reported.The company provided medical transcription services to several federal government clients, including the Department of Veterans Affairs (VA), the Department of Defense (DOD) and the Public Health Service (PHS)...

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