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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

Jury finds Science Applications International Corp. violated FCA

Posted on August 07, 2008
A federal jury found that Science Applications International Corp. (SAIC) violated the False Claims Act and ordered the company to pay the government $6 million in damages. The Federal Times reported that the jury concluded that SAIC failed to disclose conflicts of interest that could have biased its work with the Nucelar Regulatory Commission...

HHS Inspector General posts 10 state FCA reviews

Posted on August 07, 2008
The Deficit Reduction Act of 2005 provided a financial incentive for states to to establish false claims acts that met certain requirements. If the Health & Human Services Inspector General determines that the state law meets those requirements, the state is entitled to an increase of 10 percent of its share of any amounts recovered...

Pratt & Whitney and subcontractor pay $52 million to settle FCA suit alleging sale of defective engine parts

Posted on August 07, 2008
Pratt & Whitney and PCC Airfoils will pay the United States $52.3 million to resolve False Claims Act allegations that the two companies knowingly sold defective turbine blade replacements for jet engines used in military aircraft. According to the Dept...

Michigan dermatologist charged in FCA suit

Posted on August 07, 2008
Robert Stokes, a Grand Rapids dermatoligist, has been charged with violating the federal Fasle Claims Act. Stokes is charged with upcoding procedures to make it seem that he had performed a more difficult procedure on patients than he actually did, thus receiving higher reimbursement from federal health care plans...

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Patholigist settles FCA suit

Posted on July 29, 2008
A Maryland pathologist has agreed to pay the United States $457, 379 to settle claims that she billed Medicare and the Federal Employees Health Benefits Program for medically unnecessary services and services not rendered.Shahla Moshiri, who owns and operates Chesapeake Diagnostics Laboratory, billed the health care programs for the physician interpretation of Pap smears that were not abnormal and therefore did not warrant such interpretation.

Amerigroup to settle FCA suit for $225 million

Posted on July 29, 2008
Health care insurer Amerigroup Corp. has agreed to pay $225 million to the United States and the state of Illinois.A former employee brought the qui tam suit, alleging that the insurer denied benefits to certain pregnant women even though it received payment from the state to provide those services through the Medicaid program.

Tool distributor settles qui tam suit

Posted on July 29, 2008
W.W. Grainger, a tool and maintenance products, has paid $6 million to settle charges that it defrauded the U.S. government.A whistleblower suit filed by a former employee alleged that the company sold supplies to government agencies at a greater markup than allowed by their contracts...

St. Louis University settles FCA allegations

Posted on July 22, 2008
St. Louis University, in St. Louis, Missouri, has agreed to pay $1 million to settle allegations that its School of Public Health violated the FCA by mischarging supplemental pay for its faculty members to federally funded grants. The whistleblower suit alleged that the school engaged in a scheme to defraud the government by overstating the time certain faculty members were spending on grants received from the Centers for Disease Control and Prevention.

Springfield, Missouri, health system will pay $60 million to settle FCA allegation

Posted on July 22, 2008
Lester E. Cox Medical Centers of Springfield, Missouri, has agreed to pay the United States $60 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute, the Justice Department reported. The government alleged that Cox's relationships with certain physicians violated the Anti-Kickback Act by providing inducement for referrals...

Washington Post article says government can't keep up with whistleblower suits

Posted on July 02, 2008
An article in the Washington Post quotes sources who say that the Justice Department doesn't have the resources to handle the volume of whistleblower suits being filed.The 300 to 400 whistleblower suits filed each year must be investigated under seal, with the relators unable to proceed until the government decides whether or not it will intervene...

Dental companies settle whistleblower lawsuit

Posted on July 01, 2008
InterDent, Inc., InterDent Service Corporation and Dedicated Dental Systems Corporation have paid the United States $377,470 to resolve allegations of fraud against Medi-Cal?s dental program, Denti-Cal. They have also paid $351, 530 to the State of California to resolve similar allegations...

California school district joins qui tam suit against builder

Posted on July 01, 2008
Western Placer Unified School District has joined a qui tam lawsuit against the architect and builder of one of its middle schools.The suit alleges that NTD-Stichler and Edge Development inappropriately received double payment for work from the district and failed to credit the district for work that was not done, or for work that was done with inferior materials...

L.A. Dept. of Water & Power files FCA suit

Posted on July 01, 2008
The Los Angeles Department of Water and Power has filed a False Claims Act suit against a construction and engineering firm, accusing it of defrauding the utility. The suit, filed in federal court in Los Angeles, alleges that CH2M Hill conspired to defraud DWP by artificially inflating the value of work done by the company and its subcontractors...

Government recovers $2 billion in health fraud in 2008

Posted on July 01, 2008
The federal government expects to recover $2.2 billion for the first half of 2008, resulting from efforts to reduce waste, farud and abuse in federal health programs.The Dept. of Health and Human Services Office of Inspector General said in its semiannual report to Congress that half of that is attributable to audit-related recoveries and the other half to investigative-related recoveries, including False Claims Act suits.

House holds hearings on FCA amendments

Posted on July 01, 2008
Amendments to the False Claims Act were the subject of hearings by the U.S. House of Representatives Committee on the Judiciary.Among the witnesses at the June 19 hearings on HR 4854 were qui tam attorneys Shelley Slade and James Helmer, who spoke of the need for Congressional action...

Washington Post on health care fraud

Posted on July 01, 2008
The Washington Post says that experts are concerned about the growing problem of health care fraud, which is estimated to cost taxpayers over $60 billion each year.The article notes that Medicare automatically pays most provider bills that are submitted with federally issued supplier numbers...

Government sues Honeywell for defective bulletproof vests

Posted on June 10, 2008
The Justice Department is suing Honeywell International Inc. for knowingly selling defective material for use in bulletproof vests. The suit claims that Honeywell knew that the ballistic material called Zylon Shield degraded quickly, leaving the vests unfit for use by law enforcement agencies and military personnel...

Hospice company will pay to resolve FCA suit

Posted on June 10, 2008
Home Hospice of North Texas will pay the U.S. a total of $500,000 to resolve civil False Claims Act allegations. The U.S. Attorney for the Northern District of Texas had alleged that the company and its owners violated the Act by submitting claims for unallowable items and services and by misrepresenting the conditions of patients in order to keep them in hospice.

Walgreen's settles Medicaid drug fraud allegations

Posted on June 10, 2008
Walgreen Co. has agreed to pay $35 million to settle claims that it improperly switched patients to different versions of the prescription drugs Ranitidine, Fluoxetine and Eldepryl in order to increase its reimbursement from Medicaid,.The Dept. of Justice press release noted that this was the third settlement with a company that had engaged in improper drug switching...

Conference on whistleblower rights

Posted on June 10, 2008
The Government Accountability Project and American University Washington College of Law are sponsoring a conference on whistleblower rights. The Emerging Era in Whistleblower Rights and the Public?s Right to Know will take place June 23, 2008 at AU Washington College of Law...

Supreme Court rules in FCA case on subsontractor fraud

Posted on June 10, 2008
In a unanimous opinion by Justice Samuel Alioto, the U.S. Supreme Court Court raised the government?s burden of proof in subcontractor fraud suits under the False Claims Act.In Allison Engine v. U.S. ex rel Sanders, decided on June 9, the court ruled that a plaintiff in a False Claims Act suit ?must prove that the defendant intended that the false record or statement be material to the government?s decision to pay or approve the false claim...

Hartford Hospital settles cancer overbilling suit

Posted on May 29, 2008
Hartford Hospital will reimburse the Medicare program $788,960 to settle allegations that it overcharged the government for certain cancer treatments over a four-year period. The False Claims Act suit accused the hospital of billing medicare for up to six units of chemotherapy per patient visit, when only one unit is permitted...

Bid rigging in military personnel moving expenses

Posted on May 29, 2008
The U.S. Dept. of Justice announced that it settled a lawsuit alleging a conspiracy to rig bids, fix prices and allocate the market for the transportation of household goods belonging to military and Defense Department personnel. The government has also intervened in two related suits...

Florida dermatologist will pay $11 million for Medicare fraud

Posted on May 27, 2008
Michael A. Rosin, a former dermatologist in Sarasota, Florida, will pay $11 million to resolve allegations of Medicare fraud.The whistleblowers who originated the False Claims Act suit accused Rosin of performing unnecessary surgeries on hundreds of patients, according to the Sarasota Herald Tribune...

Medtronic unit settles False Claims Act suit

Posted on May 27, 2008
Medtronic Inc. will pay $75 million to resolve claims that a company it purchased engaged in Medicare fraud, according to the Boston Globe and the New York Times.The whistleblower suit was brought by two former employees of Kyphon Inc., a medical device manufacturer bought by Medtronic last November...

Baptist Health South Florida will pay $7.8 million to settle FCA suit

Posted on May 15, 2008
Baptist Health South Florida Inc. will pay the United States $7,775,000 to settle claims that it violated the False Claims Act and the Stark Statute between 2003 and 2005. The government alleged that the healthcare system paid excessive compensation to an oncology group that was a source of patient referrals, according to an article in the Sun Herald...

Computer Sciences Corp. settles FCA suit

Posted on May 15, 2008
Computer Sciences Corporation (CSC), an information technology and business services company, will pay $1.37 million to resolve allegations that it solicited and received improper payments on technology contracts with government agencies, the Justice Department announced on May 15, 2008...

FCA case alleging customs fraud settles

Posted on May 15, 2008
The U.S. Attorney's Office for the Southern District of New York announced the settlement of a customs fraud case for $2.8 million.The suit, which originated as a whistleblower complaint, involved three importers, Intertex International Inc., J.J. Basics, Inc...

Connecticut attorney general calls for False Claims Act

Posted on May 12, 2008
Connecticut Attorney General Richard Blumenthal has asked the state's legislators to enact a False Claims Act. A special legislative session is starting and Blumenthal thinks the legislature should take this opportunity to pass an act, modeled on the federal False Claims Act, that would allow citizens reporting fraud to receive a portion of the damages...

U.S. joins qui tam suit against government contractor

Posted on May 09, 2008
The U.S. Department of Justice has joined a whistleblower suit against Materials and Electrochemical Research Corp., saying company officers created a false company and forged signatures to obtain millions in government contracts.The suit alleges that the Tucson, Arizona, company filed falsified documents to get contracts with NASA, the Dept...

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