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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

Bayer will pay $97.5 million to settle kickback allegations

Posted on November 26, 2008
Bayer HealthCare LLC has agreed to pay the United States $97.5 million to resolve allegations that the company paid kickbacks to diabetic suppliers and caused those suppliers to submit false claims to Medicare.The settlement resolves allegations that Bayer engaged in a cash-for-patient scheme through which the company paid 11 diabetic suppliers to convert their patients to Bayer?s products from supplies manufactured by its competitors.

RBC Mortgage Co. will settle FCA suit for over $10.71 million

Posted on November 26, 2008
RBC Mortgage Company (RBC) will pay the federal government more than $10.71 million to resolve a False Claims Act suit that alleged the company gave the U.S. government false information about borrowers who took out 219 home loans that ended up in foreclosure...

Rennsylvania hospital settles qui tam suit for $1.9 million

Posted on November 26, 2008
St. Vincent Health System Inc. of Erie, Pennsylvania, will pay $1.9 million to the federal government to settle a whistleblower lawsuit alleging overcharging of Medicare. The overcharges allegedly resulted from inflated reimbusement claims that led to "outlier" payments, payments Medicare makes when the costs of treating a patient greatly exceed the set reimbursement amount...

Sen. Grassley urges use of FCA to protect bailout funds

Posted on November 20, 2008
Sen. Charles Grassley, one of the authors of the 1986 amendments that strengthened the False Claims Act, is concerned that money authorized through the recently approved $700 billion bailout not be lost to fraud.Sen. Grassley sent a letter to Treasury Secretary Paulson and Attorney General Mukasey, stressing the need for oversight and reminding them how effective the False Claims Act has been in preventing, deterring and prosecuting fraud...

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False Claims Act recoveries reach $1.34 billion in FY 2008

Posted on November 11, 2008
The United States Dept. of Justice announced that it has secured $1.34 billion in settlements and judgments under the False Claims Act in fiscal year 2008. This brings the total recoveries to more than $21 billion since the Act was amended in 1986 to strengthen the qui tam provisions...

Pratt & Whitney settles FCA suit

Posted on November 11, 2008
Pratt & Whitney and PCC Airfoils, a division of Precision Castparts, have agreed to pay $52 million to settle False Claims Act allegations that the companies knowingly sold defective turbine blade replacements for jet engines. The defect led to the June 2003 crash of an F-16 jet, according to an article in Defense News.

D.C. sues B of A under FCA

Posted on November 11, 2008
The District of Columbia has filed a $105 million lawsuit against the Bank of America for its role in a a tax scam perpetrated by one of the District's employees. The suit was brought under the District's False Claims Act.The Washington Post reports that an employee of the District's Office of Tax and Revenue processed $48 million in bogus tax refunds and sent them to family and friends...

Connecticut care center settles FCA charges it hired nurse with revoked license

Posted on November 11, 2008
Walnut Hill Care Center of New Brtiain, Connecticut, will pay the U.S. government $222,419 to resolve charges it hired a nurse without checking to see her license had been revoked, the New Britain Herald reported.The fine is based on what Medicare, Medicaid and other federal programs have paid for the services of someone barred from nursing and therefore ineligible for federal pay...

NY Times reports on FCA suit alleging fraud by ATK

Posted on November 06, 2008
Kendall Dye, an engineer with ATK Thiokol, was astonished when he discovered that the company was knowingly supplying dangerously unsafe flares to the United States military, according to an article by Jonathan Glater in the November 2 New York Times...

Houston company pays to resolve FCA and kickback allegations

Posted on November 06, 2008
EGL Inc. has agreed to pay the federal government $750,000 to resolve allegations that the company violated the False Claims Act by paying kickbacks to employees of KBR, the Justice Department announced.The company, which had previously paid $4 million for allegedly inflating invoices, had a subcontract with KBR to facilitate shipments of military cargo to Iraq and Kuwait...

St. Joseph Healthcare of New Jersey settles FCA suit

Posted on November 06, 2008
St. Joseph Healthcare System Inc. has agreed to pay the federal government $1.75 million to settle a whistleblower lawsuit alleging the hospital defrauded Medicare by improperly inflating its reimbursement claims. The inflation allowed the hospital to receive "outlier" payments, which the Medicare program makes to hospitals when the actual costs for treating a particular patient greatly exceed a predetermined reimbursement amount for that type of treatment...

Cephalon will pay $425 million to settle off-label marketing suit

Posted on November 06, 2008
The U.S. Dept. of Justice announced on September 29 that biopharmaceutical company Cephalon will enter a criminal plea and pay $425 million to resolve claims that it marketed three drugs for uses not approved by the Food and Drug Administration (FDA)...

New Jersey hospital settles FCA suit

Posted on November 06, 2008
Cooper University Hospital in Camden, N.J., has agreed to pay the United States $3.85 million to settle allegations that it defrauded Medicare, the Justice Department announced on September 24, 2008.The suit was brought by a whistleblower, Anthony Kite, who was represented by Larry P...

NY City hospital will pay $89 million to resolve fraud allegations

Posted on September 16, 2008
New York's Staten Island University Hospital will pay $88.9 million to settle allegations it had defrauded Medicare, Medicaid and an insurance program covering the military. According to the U.S. Dept. of Justice, the federal government will receive $74 million and New York State will receive $14...

DOJ blocked case against Kerr-McGee, US Attorney says

Posted on September 16, 2008
McClatchy newspapers reports that the U.S. Attorney in Colorado was blocked from supporting a whistleblower suit against Kerr-McGee.U.S. Attorney Troy Eid said that senior Justice Dept. officials overruled his request to intervene in the whistleblower case, jeopardizing the government's prospects for recovering as much as $40 million from a major oil company for its alleged underpayment of royalties...

Texas AG reaches $28 million settlement with Abbott Labs

Posted on September 16, 2008
Texas Attorney General Greg Abbott announced a $28 million civil settlement with Abbott Laboratories Inc.The settlement resolves the state?s claims that the drug manufacturer falsely reported drug prices to the state and federal Medicaid programs. Under state and federal law drug manufacturers are required to report the prices at which they sell their products to various providers, including pharmacies, wholesalers and distributors...

Whistleblower case against Kerr-McGee revived

Posted on September 16, 2008
The Denver Post reports that the 10th Circuit has reversed a lower court dismissal of a $7.6 million jury verdict against Kerr-McGee. The suit, brought by a former Minerals Management Service auditor, alleged that Kerr-McGee underpaid the government on royalties for federal offshore oil leases...

U.S. sues Boeing for inflating contract price

Posted on September 16, 2008
The federal government filed a civil suit against Boeing, alleging that the company unlawfully inflated the price it charged the Air Force to manufacture the Towed Decoy System for the B-1 bomber.The suit, filed in District Court in Los Angeles, contends that during contract negotiations Boeing failed to disclose that it would outsource the fabrication of most of the components of the parts that were to be used in the program...

Annals of Internal Medicine article examines whistleblowers' impact on health care fraud

Posted on September 16, 2008
A synopsis of an article published in the September 2, 2008 issue of the Annals of Internal Medicine:"Federal regulators have aggressively prosecuted health care fraud since the early 1990s, leading to billions of dollars in financial recoveries. Nearly all major cases today are qui tam actions, involving whistleblowers with inside knowledge of the allegedly illegal schemes...

Feds continue to investigate kyphoplasty fraud

Posted on September 16, 2008
Investigators from the US Attorney's Office in Buffalo and the US Dept. of Health and Human Services are looking into health care fraud involving kyphoplasty, according to a report in the Indiana Post-Tribune.Federal agents are making unannounced visits to investigate hospital billing for kyphoplasty, a miminally invasive back surgery procedure...

Report finds fraud and errors in Medicare payments for medical equipment

Posted on September 16, 2008
The rate of improper Medicare payments for wheelchairs and other durable medical equipment is much higher than the government has estimated, according to a report from the Dept. of Health and Human Services' Inspector General.The report found an "error rate" of almost 29 percent in a sample of claims paid in 2006 under Medicare's multibillion-dollar durable medical equipment program...

California announces settlement with Citibank in whistleblower suit

Posted on September 16, 2008
California Attorney General Edmund Brown announced a settlement with Citibank regarding the company's illegal "account sweeping" program.The company used a computer program that wrongfully swept positive balance accounts from credit-card customers into Citibank's general fund...

General Dynamics resolves defective military equipment suit

Posted on August 21, 2008
General Dynamics will pay $4 million to resolve claims that a subsidiary of the company fraudulently billed the government for parts used in Navy aircraft and submarines.U. S. Attorney for the Eastern District of New York had alleged that the General Dynamics Armament and Technical Products subsidiary defectively manufactured or failed to test parts used in various Navy and Air Force aircraft and submarines...

Government's use of contractors increases rick of conflict of interest

Posted on August 21, 2008
Following the recent jury verdict against Science Applications Iinternational Company, the Washington Post has published an article on how the government's increased reliance on contractors as consultants can allow those companies to gain insider knowledge and to help draft rules that could benefit their own bottom lines...

Amerigroup will pay $225 million to settle FCA suit

Posted on August 21, 2008
Amerigroup Corp., a Virginia insurance company, has agreed to end a pending appeal and pay $225 million to resolve claims that it defrauded the Illinois Medicaid program.A federal jury had found that the company systematically avoided enrolling pregnant women and other high-risk patients in their managed care program in Illinois...

BlueCross BlueShield of Tennessee will settle FCA suit

Posted on August 12, 2008
BlueCross BlueShield of Tennessee has agreed to pay the United States $2.1 million to settle charges that it violated the False Claims Act. According to the Justice Department press release, the settlement will resolve allegations that the company failed to adjust hospitals? cost-to-charge ratios in a timely manner in its role as the Medicare Part A fiscal intermediary for the state of New Jersey, resulting in overpayments.

False Claims Act amendments pending in Congress

Posted on August 12, 2008
The National Law Journal reports that proposed amendments to the federal False Claims Act are sharpening the divide between supporters and opponents.The House and Senate have similar bills awaiting final action. They would make the most substantive changes in the law since 1986...

District of Columbia hospital settles FCA suit

Posted on August 12, 2008
The District of Columbia has agreed to settle charges that its psychiatric hospital, St. Elizabeths, submitted fales Medicare billings.The District will relinquish claims to more than $11 million in billings, according to a Dept. of Justice press release...

Southern California hospitals accused of using homeless to defraud Medicare

Posted on August 12, 2008
Three Southern California hospitals, Los Angeles Metropolitan Medical Center, Tustin Hospital and Medical Center, and City of Angels Medical Center, are alleged to have used the homeless to defraud Medicare and Medi-Cal.According to the Los Angeles Times, the facilities recruited homless patients for expensive and unnecessary medical procedures...

Second whistle-blower suit filed against Kaplan Higher Education

Posted on August 12, 2008
The Chronicle of Higher Education reports that another former Kaplan employee has filed a False Claims Act suit against the company.Kaplan Higher Education is accused of unlawfully compensating admissions recruiters, in violation of federal rules barring incentives...

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