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October 17, 2014
Healthcare Fraud
Tennessee District Court Approves Statistical Sampling in Pivotal False Claims Act Case
As we discussed yesterday, the False Claims Act is often triggered by widespread, pervasive, long-term fraudulent behavior–resulting in voluminous records and hundreds of thousands of invoices evidencing the fraudulent misconduct. As a result, courts have begun to consider whether the use of a statistical random sample of admissions or patient […]
October 16, 2014
Healthcare Fraud
District Court Allows Use of Sampling in Complex False Claims Act Case Against LifeCare
As you can likely imagine, the sheer volume of evidence that emerges during the investigation and discovery phases of a False Claims Act case can quickly overwhelm the court and create logistical difficulty for the party tasked with presenting such evidence to support an assertion of liability. For instance, if […]
October 15, 2014
False Claims Act Legal News
Pennsylvania Appellate Court Considers Confidential Nature of Qui Tam Actions in Light of Insurance Policy
In the corporate world, companies often take out extensive insurance policies to protect against the inevitable financial harms following a civil lawsuit. Much like any other insurance policy, the insurer will usually include language in the policy terms excluding coverage for any pending lawsuits filed or commenced prior to the […]
October 14, 2014
Healthcare Fraud
Shire Pharmaceuticals to Pay $56 Million to Settle False Claims Act Allegations
According to a recent announcement by the Department of Justice, Shire Pharmaceuticals has agreed to pay $56 million to settle claims it fraudulently marketed the popular attention-deficit drug Adderall and thereafter submitted claims to U.S. government healthcare programs for reimbursement. The allegations differ from the oft-cited problem of “off-label marketing,” […]
October 13, 2014
Healthcare Fraud
CVS Caremark Corporation Settles False Claims Act Allegations for $6 Million
In several prior posts, we have discussed the ongoing battle against “reverse false claims” involving Medicare and Medicaid patients. In general, a reverse false claim occurs when a healthcare provider or government contractor receives overpayment for an invoice and knowingly fails to issue a refund or reimbursement to the government. […]
October 10, 2014
SEC Fraud
SEC Announces $50 Million Whistleblower Award
In light of the 2008 financial crisis – which was propelled primarily by corporate misconduct and serious Wall Street delinquency – the 2010 Dodd-Frank Act was created in order to not only police investor transgressions but to incentivize those with knowledge of possible securities fraud to come forward and report […]
October 8, 2014
Healthcare Fraud
Novartis Pharmaceuticals to Face Possible False Claims Act Liability for Kickbacks
Swiss-based Novartis Pharmaceuticals has been subjected to possible liability under the False Claims Act – and a federal judge in New York recently concluded the case may continue. In U.S. ex rel. Bilotti v. Novartis Pharmaceuticals Corp., a whistleblower brought to light several issues involving the drug maker, most notably […]
October 7, 2014
Mortgage Fraud
Virginia Attorney General Initiates Record-Shattering False Claims Act Lawsuit
Earlier this month, Virginia Attorney General Mark R. Herring announced a record $1.15 billion lawsuit against several major banking institutions. The lawsuit stems from the rampant misconduct that eventually gave rise to the 2008 housing bubble, and includes the following defendants: Barclay’s Capital, Inc. Citigroup Global Markets Inc. Countrywide Securities […]
October 6, 2014
Contractor Fraud
D.C. Circuit Rejects Relator’s Bid to Hold GovPlace Liable Under the False Claims Act
Contractor fraud is an unfortunately common type of False Claims Act litigation, and it is not unheard of for a government contractor to rip off American taxpayers for hundreds of millions of dollars – particularly in the defense sector. However, not all acts of alleged misconduct are actionable under the […]
October 3, 2014
False Claims Act Legal News
U.S. Attorney General Proposes Greater Rewards for Corporate Fraud Whistleblowers
Earlier this month, U.S. Attorney General Eric Holder spoke – along with several top DOJ colleagues – regarding the administration’s goals to identify, isolate, and eliminate costly and wasteful corporate fraud. In a speech to the New York University School of Law, Holder reiterated that he hopes to see an […]
October 2, 2014
Military Contractor Fraud
U.S. Government Settles Defense Contractor Fraud Case for $5.5 Million
In a False Claims Act settlement, the makers of military-grade batteries for use in Humvee vehicles agreed to settle claims each provided inferior batteries to the Department of Defense for a period spanning several years. The settlement resolves extensive allegations by a former employee-whistleblower, including the assertion that the sub-par […]
October 1, 2014
Grant Fraud
NPR Host Ira Flatow & Affiliated Charity Settle False Claims Act Allegations
Federal grant money can be a wonderful resource for non-profits, charities, start-ups, and educational organizations in need of capital to advance their stated mission or purpose. However, federal grants are accompanied by lengthy and detailed agreements that impose conditions on the recipient with regard to permissible uses for the funds. […]
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