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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

Supreme Court to hear FCA case on public disclosure bar

Posted on June 23, 2009
The U.S. Supreme Court has agreed to hear a case on whether whistleblower lawsuits are restricted if the information behind the lawsuits came out in state or local agency reports or audits, rather than in a federal proceeding. The False Claims Act includes a "public disclosure bar," making it more difficult for individuals to bring qui tam suits when the information has been publicly disseminated...

The Obama Administration has released

Posted on June 22, 2009
The Obama Administration has released a blueprint for regulatory overhaul, Financial Regulatory Reform: A New Foundation. Among the changes proposed is one that could have False Claims Act ramifications: the establishment of a fiduciary duty for broker-dealers offering investment advice...

Kindred Healthcare settles drug overbilling suit

Posted on June 15, 2009
Kindred Healthcare, Inc. and its successor PharMerica Healthcare Pharmacy, LLC, have agreed to pay over $1.3 million to settle claims that Kindred overbilled TennCare and the Medicaid program for pharmaceuticals, according to a press release from the U...

HHS and DOJ announce interagency anti-fraud effort

Posted on June 15, 2009
The Dept. of Justice and the Dept. of Health and Human Services have announced the creation of an interagency effort, the Health Care Fraud Prevention and Enforcement Action Team (HEAT), to combat Medicare fraud. In addition, Medicare Fraud Strike Forces, already operating in South Florida and Los Angeles, will be expanded to Detroit and Houston...

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Tennessee USAO files FCA suit against health management company

Posted on June 15, 2009
The U.S. Attorney's Office for the Middle District of Tennessee has filed a False Claims Act suit against Diversified Health Management, Incorporated (Diversified), James W. Carell (the company's president), and the James W. Carell Family Trust. Diversified acted as the mangement company for three home health agencies...

Honolulu hospital pays $2 million to settle qui tam sui

Posted on June 15, 2009
Queen's Medical Center of Honolulu, Hawaii has paid a total of $2.5 million to settle two whistleblower suits that alleged overbilling of the Medicare program, the State of Hawaii Medicaid program, and TRICARE, the federal health benefits program for military dependents...

NJ University Hospital settles qui tam suit alleging double billing of Medicaid

Posted on June 15, 2009
The University of Medicine and Dentistry of New Jersey (UMDNJ) has agreed to pay the United States $2 million to settle a whistleblower suit that alleged its hospital violated the False Claims Act. The suit contended that University Hospital submitted claims to Medicaid for outpatient physician services that were also being billed by doctors working in the hospital?s outpatient centers...

California mortgage company accused of violating False Claims Act

Posted on June 15, 2009
The federal government has accused California mortgage lender Capmark Finance Inc. of violating the False Claims Act.In a lawsuit filed in U.S. District Court in Los Angeles, the Justice Department charges that Capmark made false statements on applications for federal mortgage insurance covering residential nursing homes.

Three HealthEast hospitals settle qui tam suit

Posted on June 15, 2009
Three HealthEast hospitals in the St. Paul, Minnesota, area have agreed to pay the federal government a total of $2.28 million to settle a whistleblower lawsuit alleging Medicare fraud involving a certain type of spinal surgery known as kyphoplasty, the Dept...

Regency Nursing and Rehab settles false claims allegations

Posted on June 15, 2009
Texas nursing home chain Regency Nursing and Rehabilitation Centers will pay the federal government $4 million to resolve allegations it submitted false claims to Medicare and Medicaid.The Justice Department announced the settlement on May 21. The False Claims Act suit accused Regency of submitting slaims for reimbursement of rehabilitation and skilled nursing services that were provided to residents who were not qualified for the services, were not medically necessary, or were not supported by adequate documentation.

Aventis settles FCA suit for $95.5 million

Posted on June 15, 2009
Aventis Pharmaceutical agreed to pay $95.5 million to settle allegations it violated the False Claims Act by misreporting drug prices, the Dept. of Justice announced on May 28.The government said Aventis manipulated its "best price" numbers for nasal sprays by entering into an agreement with the HMO Kaiser Permanente that repackaged Aventis' drugs under a new label...

US intervenes in qui tam suit against school lunch meat suppliers

Posted on May 20, 2009
The Dept. of Justice announced on May 1 that it has intervened in a whistleblower suit against two former suppliers to the National School Lunch Program for submitting false claims to the Dept. of Agriculture.The two companies, Hallmark Meat Packing Company and Westland Meat Company Inc...

US and 16 states join qui tam suits against Wyeth

Posted on May 20, 2009
The United States and 16 states have joined in two whistleblower suits that allege that Wyeth, a drug manufacturer, Wyeth, failed to pay rebates they were required to make to the Medicaid program. Two drugs, Protonix Oral and Protonix IV, used to suppress stomach acid, are at issue in the suits...

Feds announce new efforts to curb health care fraud

Posted on May 20, 2009
The Justice Department and the Dept. of Health and Human Services announced the creation of a new interagency effort to combat Medicare fraud.In addition to the new Health Care Fraud Prevention and Enforcement Action Team (HEAT), the two agencies will add joint DOJ-HHS Medicare Fraud Strike Forces in Detroit and Houston...

Minnesota enacts state false claims act

Posted on May 20, 2009
Minnesota Governor Tim Pawlenty has signed S.F. 2082, an omnibus budget bill that includes provisions allowing private citizens who discover fraud against the state to bring qui tam actions.The law provides for an award to a successful qui tam plaintiff of between 15 and 30 percent of the recovery, plus attorney's fees and expenses...

President signs False Claims Act amendments bill

Posted on May 20, 2009
President Obama has signed the Fraud Enforecment and Recovery Act into law. In his signing statement, the President stressed the importance of safeguarding the "precious taxpayer dollars" needed for economic recovery.Among the provisions of the law are sections that amend the False Claims Act...

FCA amendments presented to president for signature

Posted on May 19, 2009
The Fraud Enforcement and Recovery Act, Senate Bill 386, has received congressional approval and has been presented to the president for signature. The bill includes provisions that would strengthen the federal False Claims Act.The House voted 338-52 on May 18 to accept the Senate's amendments...

Quest Diagnostics will pay $302 million to resolve whistleblower suit

Posted on April 20, 2009
Quest Diagnostics has agreed to pay $302 million to resolve allegations brought by a whistleblower that its subsidiary manufactured and sold faulty blood test kits.The tests were used to determine the concentration of a parathyroid hormone in dialysis patients...

Alta Colleges settle student aid FCA suit

Posted on April 20, 2009
Alta Colleges Inc. and its Texas schools will pay the United States $7 million to resolve False Claims Act allegations of submitting false claims for federal student aid funds.A college must meet state licensing requirements in order to qualify to receive federal student aid...

Amendments to California FCA proposed

Posted on April 20, 2009
California Assembly Bill 1196 has been introduced to amend the state's False Claims Act.According to the Legislative Counsel's Digest the bill would specify that "claim" as used in the Act includes "any record or statement used to conceal, avoid, or decrease anobligation to pay or transmit money or property to the state or anypolitical subdivision, and to require the imposition of a civil penalty on a person found liable for a violation...

NetApp settles FCA case alleging GSA contract fraud

Posted on April 20, 2009
NetApp, a computer storage and data management solutions company, will pay the federal government $128 million to settle a False Claims Act suit.NetApp, which supplied hardware, software and storage solutions to government clients through the General Service Administration's Multiple Award Schedule, was required to report discounts it gave to its commercial clients...

GAO says there's fraud in Small Business Administration program

Posted on April 20, 2009
The Small Business Administration's (SBA) Historically Underutilized Business Zone (HUBZone) program provides federal contracting assistance to small firms located in economically distressed areas. In a June 2008 study the Government Accountability Office (GAO) said that the HUBZone program was vulnerable to fraud and abuse...

Northrop Grumman settles qui tam suit for $325 million

Posted on April 06, 2009
In the largest qui tam settlement ever paid by a defense contractor, Northrop Grumman has agreed to pay $325 million to resolve allegations that its predecessor TRW Inc. violated the federal False Claims Act.The suit, originally filed by whistleblower Robert Ferro, alleged that the company provided and billed the government for defective parts that were integrated into satellites used by the National Reconnaisance Office...

Sikorsky Aircraft settles failure-to-test FCA suit involving Black Hawk helicopters

Posted on April 06, 2009
Sikorsky Aircraft Company will pay $2.9 million to resolve allegations that it violated the False Claims Act by failing to test armor plated inserts used in Black Hawk helicopters manufactured for the U.S. Army.The U.S. Attorney's Office for the District of Connecticut said that from 1992 until 2006, the ballistic panels were not tested to ensure that they had been manufactured according to government requirements.

CVS Caremark settles whistleblower suit for $36.7 million

Posted on April 06, 2009
CVS Caremark Corp. will pay $36.7 million to settle claims that it improperly switched patients from the tablet version of Zantac to a more expensive capsule version in order to increase Medicaid reimbursement, the U.S. Dept. of Justice announced.The suit was originally brought as a whistleblower suit by Bernard Lisitza...

San Mateo County will settle FCA allegations for $6.8 million

Posted on March 16, 2009
San Mateo County, Calif., will pay the federal government $6.8 million to resolve allegations that the San Mateo Medical Center (SMMC) submitted false claims to Medicare and Medicaid.The U.S. Dept. of Justice charged that the SMMC falsely inflated its bed count to Medicare in order to receive higher payments under Medicare?s Disproportionate Share Hospital (DSH) adjustment...

Healthways announces proposed settlement of qui tam lawsuit

Posted on March 16, 2009
Healthways, Inc. announced that it has agreed to a proposed settlement to resolve a whistleblower lawsuit filed under the False Claims Act.The suit, which the Nashville Post says the government did not join, alleged that the company's former Diabetes Treatment Center of America business paid doctors for referrals...

Victory Memorial Hospital settles Medicare fraud suit

Posted on March 12, 2009
Victory Memorial Hospital has agreed to pay at least $2.3 million to resolve allegations brought in a whistleblower suit that it defrauded the Medicare program. The U.S. Attorney's Office for the Eastern District of New York announced the settlement under the False Claims Act...

Feds intervene in suit against EMC alleging fraud

Posted on March 12, 2009
The United States has intervened in a whistleblower suit filed against EMC Corp. The suit alleges that EMC Corp. gave kickbacks to federal IT consultants and overcharged government agencies for hardware, software and services, according to a Dept. of Justice press release...

Kansas cardiologist settles FCA suit

Posted on March 12, 2009
Joseph P. Galichia, M.D. and his practice group have agreed to pay the United States $1.3 million to settle claims that they violated the False Claims Act by submitting false claims to Medicare, the Justice Department announced.The government alleged that claims were submitted for services not provided orwere submitted without proper documentation...

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