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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.
Post Frequency: 1.9/day Last Entry: March 31, 2011 at 17:41:00 Recent Entries: 271
By Phillips & Cohen LLP
Go to False Claims Act - Qui Tam, find other Qui Tam blogs, or browse all law blogs.
Helmet manufacturer settles whistleblower suit
Posted on February 07, 2008Sioux Manufacturing of Fort Totten, North Dakota, will pay $2 million to settle a suit alleging that the helmets it supplied to the military were inadequate.The suit, originally brought under the whistleblower provisions of the False Claims Act, alleged that the Kevlar woven at Sioux failed to meet the government?s minimum standard of 35 by 35 threads a square inch...
Buyer of New Jersey hospital will settle qui tam suit
Posted on February 05, 2008The buyer of Bayonne Medical Center will pay $2.5 million to settle allegations of Medicare fraud, the U.S. Dept. of Justice announced on February 4, 2008The hospital is currently in bankruptcy and its buyer, IJKG, LLC, entered into the settlement.The False Claims Act suit, which originated as a whistleblower action, alleged that the hospital improperly increased charges to Medicare in order to receive supplemental reimbursement, called outlier payments...
U.S. intervenes in whistleblower suits against NJ hospitals
Posted on January 28, 2008The federal government has intervened in two whistleblower lawsuits alleging Medicare fraud against three New Jersey hospitals, according to an AP story published January 25, 2008 in Forbes. The hospitals named in the suits are Robert Wood Johnson University Hospital, Barnert Hospital and Bayonne Medical Center...
Big Dig contractors agree to pay $458 million
Posted on January 24, 2008Bechtel/Parsons Brinckerhoff (B/PB) and design consultants will pay the United States and the Commonwealth of Massachusetts a total of $458 million to settle allegations of "gross failures" in the oversight and management of the construction of Boston's Central Artery Tunnel, known as the Big Dig...
Louisiana hospital settles fraud allegations for $1.9 million
Posted on January 22, 2008Lafayette General Medical Center will pay $1.9 million to settle allegations that it defrauded federal and state health plans by billing for unnecessary cardiology procedures, according to the January 11, 2008 press release from the U.S. Attorney's Office...
New Jersey governor signs state False Claims Act
Posted on January 22, 2008Governor John Corzine signed the New Jesrsey False Claims Act on January 14, 2008, according to a press release on the governor's site.The law, which will take effect 60 days after the signing, has a qui tam provision that allows whistleblowers who discover fraud to file suit on behalf of the state...
New Jersey False Claims Act passes Senate
Posted on January 08, 2008The New Jersey Senate has passed a state False Claims Act, according to a January 7, 2008 article at PolitickerNJ.com.The bill, sponsored by Senators John H. Adler and Joseph F. Vitale, will now go to the state Assembly.The proposed law would allow private individuals in New Jersey to bring an action, either by themselves or working with the State Attorney General, against any person who knowingly causes the State to pay a false claim...
Massachusetts limo company will repay tolls
Posted on January 08, 2008Massachusetts Attorney General Martha Coakley announced that the A&M Limosine Service Co. will pay $65,000 to resolve charges it underpaid tolls for airport tunnels, according to a January 3, 2008 report in the Worcester, Mass., Telegram & Gazette...
Arkansas doctor settles whistleblower suit and pleads guilty to accepting kickbacks
Posted on January 03, 2008Patrick Chan, an Arkansan neurosurgeon, pleaded guilty to receiving kickbacks from a medical supply saleswoman in exchange for performing surgeries using her company's supplies.Chan also settled a whistleblower lawsuit for $1.5 million that was under the federal False Claims Act...
Road contractor settles federal whistleblower suit
Posted on January 03, 2008Gohmann Asphalt of Clarksville, Ind., will pay $8.2 million to settle allegations that the company falsified tests on asphalt samples on raods and highways in Kentucky and Indaina.A former employee brought the suit under the qui tam provisions of the Federal False Claims Act...
St. Joseph's Hospital of Atlanta will pay $26 million in whistleblower suit
Posted on December 26, 2007Saint Joseph's Hospital of Atlanta Inc. and Saint Joseph's Health System Inc. have agreed to pay $26 million to settle allegations that they defrauded Medicare.The suit, which originated as a whistleblower suit filed by a nurse who worked at Saint Joseph's, alleged that the hospital violated the federal False Claims Act with regard to billing for inpatient admissions and other services...
Whistleblower suit charges Pfizer with off-label marketing of Lipitor
Posted on December 20, 2007A whistleblower suit charges that Pfizer defrauded the government by illegally promoting off-label uses of Lipitor, according to the Wall Street Journal on December 20, 2007.The lawsuit, filed in 2004 but just unsealed, alleges that Pfizer used misleading educational programs as part of a marketing strategy to encourage physicians to prescribe the cholesterol-lowering medication for patients who did not need it...
Mining company will pay Calif. $42.2 million in stolen sand case
Posted on December 17, 2007Hansen Building Materials has agreed to pay the state of California $42.2 million to settle allegations that the company stole 2 million cubic feet of sand. It was then sold to construction companies to make concrete and cement.The whistleblower who originated the suit will receive $10 million for his efforts, according to a December 12, 2007 report in the San Francisco Chronicle...
New Jersey hospital settles whistleblower suit
Posted on December 17, 2007Warren Hospital in Phillipsburg, N.J., will pay the United States $7.5 million to settle allegations that it defrauded Medicare. The suit, which originated as a whistleblower suit under the qui tam provisions of the federal False Claims Act, alleged that the hospital improperly increased charges to Medicare patients in order to obtain enhanced reimbursement from Medicare...
HealthSouth to pay $14.2 million to settle health care fraud claims
Posted on December 17, 2007HealthSouth Corp. and two physicians have agreed to pay the United States a total of $14.9 million to settle allegations that the company submitted false claims to the government and paid illegal kickbacks to physicians who referred patients for care in some of its hospitals, outpatient rehabilitation clinics, and ambulatory surgery centers, the Justice Department announced on December 14, 2007...
California ambulance company settles Medicare fraud allegations
Posted on December 17, 2007The president of a Los Angeles-based ambulance company, Greybor Medical Transportation, Inc., and his wife have agreed to pay the government $6 million to settle civil allegations that they fraudulently overbilled Medicare.The press release from the U...
Texas hospital settles healthcare FCA suit
Posted on December 17, 2007Harris Methodist HEB Hospital (HEB) of Bedford, Texas, has agreed to pay the state of Texas and the federal goverment $1.9 million in settlement of a False Claims Act suit.HEB's corporate parent self-disclosed to the inspector general of the Dept. of Health and Human Services that it had discovered a physician lease arrangement that might have been in violation of federal law...
Arizona Heart Hospital settles FCA suit
Posted on December 17, 2007Arizona Heart Hospital has agreed to settle a False Claims Act suit involving the implantation of graft devices used to treat aneurysms. According to a press release published December 10, 2007 at surgicenteronline.com, the U.S. Dept. of Justice alleged that the devices had not received final marketing approval from the Food and Drug Administration...
Merck settles nominla pricing fraud case for $670 million
Posted on December 10, 2007Merck has agreed to pay $670 million to settle allegations that it violated the False Claims Act by engaging in nominal pricing fraud.According to a December 4, 2007 article in the Corporate Crime Reporter, the company allegedly defrauded federal and state health care programs by offering to provide hospitals with, for example, its statin drug at a nominal cost if the hospital would agree to fill the majority of its statin prescriptions with that company's drug.
Haven Healthcare office raided by federal investigators
Posted on December 04, 2007The corporate headquarters of Haven Healthcare, an operator of nursing homes, were raided by federal investigators last week, according to a December 1, 2007 posting on the website of the Hartford Courant.Sources said that the company is being investigated for possible Medicare and Medicaid fraud and tax fraud...
Oklahoma doctor will pay $1.5 million in qui tam suit
Posted on December 04, 2007Gregory Pinegar, formerly a general practice physician in Alva, Oklahoma, will pay $1.5 million to resolve civil charges of defrauding Medicare.Pinegar is currently serving a 33 month prison term after pleading guilty in a parallel criminal proceeding...
TVA settles FCA suit
Posted on November 29, 2007The Tennessee Valley Authority Inspector General and the Dept. of Justice have announced a settlement in excess of $25 million for an alleged violation of the civil False Claims Act.Three Kinder Morgan limited partnerships are alleged to have defrauded the TVA and other private companies for whom they supplied coal handling and transport services...
State of California and City of San Francisco sue voting systems vendor
Posted on November 26, 2007San Francisco City Attorney Dennis Herrera has filed suit against Election Systems & Software, Inc., the City's voting systems vendor, according to a November 20, 2007 press release.The suit alleges that the company violated California's Elections Code, False Claims Act and Unfair Competition Law and engaged in fraud, breach of contract and negligent misrepresentation...
Arkansas files FCA suit against Johnson & Johnson
Posted on November 26, 2007Arkansas Attorney General Dustin McDaniel announced on November 20, 2007 that he has filed a suit against Johnson & Johnson Inc. and two of its subsidiaries, accusing the drug makers of illegally promoting an antipsychotic medication.According to the Arkansas Democrat Gazette the state alleges that the drug, Risperdal, is being prescribed to treat illnesses it isn?t approved for and the manufacturers have been misrepresenting its risks to patients...
Sleep diagnostic clinic accused of FCA violations
Posted on November 26, 2007HMS Diagnostics, Inc., a sleep disorder center, reported that it is being investigated for improper Medicare billing.The company's press release characterizes their alleged mischarging as a possible violation of "little known regulations." Medicare regulations require that the sleep tests be administered by properly certified technicians in order to qualify for reimbursement...
Government joins FCA suit against Lockheed
Posted on November 20, 2007The U.S. Dept. of Justice has announced it will intervene in a qui tam suit filed against Lockheed Martin Corp. and its supplier, Tools & Metals Inc.The suit alleges that TMI overcharged for manufacturing tools sold to Lockheed Martin, which resulted in Lockheed Martin submitting false claims to the Defense Department from January 1998 through February 2006...
Hospital purchasing whistleblower profiled in NY Times
Posted on November 19, 2007Cynthia Fitzgerald, whose False Claims Act suit against Novation and other defendants was unsealed in September, is the subject of an article in the November 18, 2007 issue of the New York Times.Ms. Fitzgerald, a former Novation employee, alleges that improper sales practices and erroneous accounting are draining millions of dollars out of Medicare through overcharges or unauthorized uses...
Medicaid: Thousands of Medicaid Providers Abuse the Federal Tax System
Posted on November 15, 2007Medicaid: Thousands of Medicaid Providers Abuse the Federal Tax System is the title of a new report from the Government Accountability Office.The GAO found that of "over 30,000 Medicaid providers, about 5 percent of those paid in fiscal year 2006, had over $1 billion of unpaid federal taxes...
Stryker Corp. and Physiotherapy Assoc. settle whistleblower suit
Posted on November 15, 2007Stryker Corporation and its former outpatient therapy division, Physiotherapy Associates Inc., will pay $16.6 million to the federal government to settle allegations that Physiotherapy submitted false claims to Medicare and other federal health care programs,...
Government Printing Office defrauded by contractor
Posted on November 08, 2007In a False Claims Act suit filed by the federal government, a printing company is accused of overcharging the Government Printing Office for work performed by a subcontractor, according to a report in the November 8, 2007 issue of the Washington Times...
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