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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

Federal government sues NJ cardiologists

Posted on May 06, 2008
Heartwire reported on April 28, 2008 that the federal government is suing two cardiologists for their role in an alleged kickback scheme. The two are among 16 cardiologists who are alleged to have participated in a scam in which the University of Medicine and Dentistry of New Jersey (UMDNJ) gave them the titles of assistant professors and salaries in return for referrals...

New Orleans hospital settles FCA allegations

Posted on May 06, 2008
Touro Infirmary, a New Orleans hospital, will pay the United States $1.75 million to settle allegations that it submitted false claims to the Medicare program, the Department of Justice announced on April 17, 2008.The lawsuit alleged that Toura made unlawful payments to a psychiatrist to induce her to refer patients to the hospital...

Government joins qui tam suit against California radiology clinis

Posted on May 06, 2008
The U.S. Attorney's Office in Los Angeles filed a complaint in intervention in a whistleblower lawsuit brought against The Oaks Diagnostics, Inc., according to an April 14, 2008 press release.The suit alleges that the clinic defrauded Medicare by billing for unnecessary radiological tests, such as CT scans and MRIs.

Heartland Dental settles whistleblower suit

Posted on May 06, 2008
Heartland Dental, an Illinois company that manages dental practices in several states, has agreed to pay $1.65 million to resolve allegations that it falsely billed Illinois Medicaid. The whistleblower suit, brought under the qui tam provisions of the False Claims Act, accused the company of defrauding Medicaid by miscoding uncovered procedures as though they were covered and upcoding simple procedures as though they were complex...

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Manufacturer settles defective bulletproof vest lawsuit

Posted on April 14, 2008
Protective Products International Inc. (PPI) will pay the federal government $960,000 to resolve a False Claims Act suit, the Dept. of Justice announced on April 10, 2008. The suit alleged that PPI sold the government Zylon bulletproof vests it knew were defective because the Zylon material was not appropriate for ballistic applications...

Florida Radiologist to Pay $7 Million to Resolve FCA suit

Posted on April 14, 2008
Radiologist Fred Steinberg, M.D., his imaging centers and related entities in Palm Beach County, Fla., have agreed to pay the federal government $7 million to resolve allegations of health care fraud, the U.S. Dept. of Justice announced on April 14, 2008...

Medicaid Dental Center resolves FCA suit

Posted on April 14, 2008
Medicaid Dental Center of North Carolina will pay $10.05 million to resolve False Claims Act allegations, the United States Justice Department announced on April 9, 2008.The company was accused of billing the North Carolina Medicaid program for medically unnecessary dental services performed on indigent children...

Geriatric care provider will settle FCA suit for $117 million

Posted on April 08, 2008
HealthEssentials Solutions, Inc., a former Kentucky-based provider of geriatric care, has admitted to to submitting false claims to Medicare. The company has agreeed to criminal restitution of $3.1 million and payment of $117 million to resolve civil claims under the False Claims Act...

Wackenhut accused of overbilling Miami-Dade County

Posted on April 08, 2008
A whistleblower lawsuit accuses Wackenhut Corp. of billing Miami-Dade County for 69,000 hours of security work that the company's employees were never paid for.The Miami Herald reported on April 7 that the "ghost posts" on the Metrorail transit system and at the Juvenile Assessment Center cost the county nearly $1...

Judiciary Committtee approves False Claims Act amendments

Posted on April 08, 2008
Proposed amendments to the False Claims Act were reported favorably out of the Senate Judiciary Committee on April 3, according to Federal Times.The bill, S 2041, sponsored by Sen. Charles Grassley, R-Iowa, would strengthen the False Claims Act, which has been weakened by a series of court decisions that limited both the ability of whistleblowers to file lawsuits and their ability to recover claims.

U.S. joins whistleblower suit against Ohio hospital

Posted on April 03, 2008
The U.S. Dept. of Justice has joined a whistleblower suit that alleges fraud by Christ Hospital and Ohio Heart and Vascular Center, the Cincinnati area's largest cardiology practice.The suit, filed under seal in 2003, contends that the hospital gave doctors in the group improper financial incentives in exchange for patient referrals...

Whistleblowers charge insurers overburden Social Security

Posted on April 01, 2008
An April 1, 2008 article in the New York Times says that whistleblowers have filed suits accusing insurers of abusing the Social Security Administration.Disability insurers can reduce payments to clients if they are accepted for government disability payments...

Whistleblowers seek to have flood insurance suit reinstated

Posted on March 31, 2008
A group of former insurance adjusters, known as the Branch Consultants LLC, have asked a federal appeals court to reinstate their False Claims Act suit, according to a March 27, 2008 article in the Times-Picayune. The suit, which was dismissed because of the Act's first-to-file bar, alleged that insurers have been systematically shifting the cost of hurricane damage onto the National Flood Insurance Program...

Government focuses on managed-care fraud

Posted on March 31, 2008
According to an article in the March 19, 2008 issue of the Wall Street Journal, government regulators are increasing their scrutiny of Medicare and Medicaid managed-care providers.The managed-care industry covers more than 37 million state and federal beneficiaries...

Companies settle FCA suit alleging faulty jet parts

Posted on March 31, 2008
Huntington Valley Industries of California and Bayjet, Inc. of new mexico have agrees to pay over $45,000 to settle allegations that they defrauded the Air Force.The False Claims Act suit alleged that the companies substituted an outdated seal used in the nose wheels of A-10 Thunderbolt aircraft, potentially endangering the lives of U...

Japanese drug company will pay $4 million to settle FCA charges

Posted on March 31, 2008
Otsuka American Pharmaceutical Inc., the U.S. subsidiary of Japanese pharmaceutical manufacturer Otsuka Pharmaceutical Co., Ltd., will pay more than $4 million to resolve allegations that it marketed Abilify, an atypical antipsychotic drug, for "off-label" uses...

Psychiatrist to pay $1.1 million to settle FCA suit

Posted on March 25, 2008
Gulshan Sultan, M.D., will pay $1.1 million to resolve allegations that she violated the Federal False Claims Act and the Tennessee Medicaid False Claims Act. The U.S. Attorney for the Eastern District of Tennessee announced the consent judgment on March 20, 2008...

CVS Caremark will settle Medicaid drug fraud allegations

Posted on March 18, 2008
CVS Caremark Corp. has agreed to pay $36.7 million to settle claims it improperly switched patients from the tablet version of the prescription drug Ranitidine (generic Zantac) to a more expensive capsule version in order to increase Medicaid reimbursement...

Healthcare consulting firm settles Medicare fraud claims

Posted on March 17, 2008
Besler & Company, Inc., a New Jersey healthcare consulting firm, will pay the United States $2.875 million to settle allegations of fraud against the federal Medicare program, according to a March 5, 2008 Justice Department press release.A whistleblower lawsuit, filed under the qui tam provisions of the False Claims Act, alleged that the firm counseled hospital clients to improperly increase charges to Medicare patients in order to obtain enhanced reimbursement.

Cathedral Healthcare System settles qui tam suit

Posted on March 17, 2008
Cathedral Healthcare System Inc. will pay the United States $5.3 million to settle allegations that it defrauded the federal Medicare program, according to a March 4, 2008 press release from the Dept. of Justice.Whistleblowers had charged that the hospital violated the False Claims Act by improperly inflating charges for inpatient and outpatient care to make the cases appear more costly than they were...

Yale-New Haven Hospital to settle FCA suit

Posted on March 17, 2008
Yale-New Haven Hospital has agreed to pay $3.8 million to resolve allegations that it violated the False Claims Act.In a March 7, 2008 press release, the U.S. Attorney's Office said that the conduct involved had been disclosed by the hospital under the Provider Self-Disclosure Protocol...

Whistleblower suit alleges overbilling by Planned Parenthood

Posted on March 17, 2008
A former Planned Parenthood executive has filed a False Claims Act suit alleging that the group's California affiliates overcharged state and federal governments for birth-control pills.The Los Angeles Times reported on March 8, 2008 that suit by a former Planned Parenthood executive contends that the organization's California affiliates overbilled the state and federal healthcare agencies by at least $180 million.

Northrop Grumman accused of defrauding Joint STARS program

Posted on March 10, 2008
A whistleblower lawsuit accuses Northrop Grumman's Melbourne division of defrauding the federal government's Joint STARS radar aircraft program. The suit alleges that through inflated labor charges, false overtime claims and other billings, Northrop Melbourne has massively overcharged the government...

Dallas school district settles FCA suit

Posted on March 04, 2008
The Dallas Independent School District has agreed to pay $316,000 to settle allegations that it misused federal grant money.The district received grant money from the Centers for Disease Control and Prevention, acoording to a February 27, 2008 article in the Milwaukee Business Journal...

Government joins whistleblower suit against South Carolina hospital

Posted on March 04, 2008
The federal government has decided to join a whistleblower lawsuit alleging that Tuomey regional hospital of Sumter, South Carolina, submitted false health care claims to Medicare and Medicaid.The surgeon who brought the False Claims Act suit alleged that Tuomey bribed doctors to go into business with the hospital and then gave them kickbacks, according to a February 28, 2008 article in The State.

Senate committee considers amendments to False Claims Act

Posted on March 03, 2008
The Senate Judiciary Committee held hearings on February 27 on proposed amendments to the False Claims Act.According to a report in the February 28, 2008 New York Times, both Democratic and Republican committee members said they wanted to work with the Justice Department to undo some of the harm they thought had been caused by courts' interpretation of the law...

Supreme Court to hear arguments in whistleblower lawsuit

Posted on February 27, 2008
The U.S. Supreme Court heard oral arguments in a federal whistleblower lawsuit on Feburary 26. The case, Allison Engine Co. Inc. v. United States, centers on the question of whether the False Claims Act applies to government subcontractors who file claims against a government contractor and not the government itself...

Louisiana qui tam bill introduced

Posted on February 12, 2008
HB 69, a bill to create a State Government Integrity Act, has been introduced in Louisiana. The state already has a Medical Assistance Programs Integrity Law, which allows qui tam suits by private citizens who discover fraud in state-run healthcare programs...

Whistleblower lawsuit alleges overcharging by Grainger Inc.

Posted on February 11, 2008
A whistleblower lawsuit accuses W.W. Grainger Inc., an international distributor of maintenance products and hand tools, of repeatedly overcharging the U.S. government. Details of the suit were set out in an Associated Press report printed in the February 11, 2007 Houston Chronicle...

Merck will pay $650 million+ to settle qui tam suit

Posted on February 07, 2008
Merck and Co. has agreed to pay more than $650 million to settle claims that it overcharged Medicaid programs for four drugs, including Vioxx and Zocor, and to resolve allegations of improper marketing to doctors, according to a February 7, 2008 press release from the U...

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