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October 13, 2014
General
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
General
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
General
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
General
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
General
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
General
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
General
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
General
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. […]
September 30, 2014
General
Episcopal Ministries to the Aging Inc. to Pay Millions in False Claims Act Settlement
A Maryland-based, not-for-profit skilled nursing corporation, known as Episcopal Ministries to the Aging, Inc. (EMA), has agreed to pay $1.3 million to the federal government to settle allegations it defrauded Medicare by making false claims for reimbursement on behalf of patients within several of its facilities. EMA, a nursing home management […]
September 29, 2014
General
Tennessee’s Meridian Surgical Partners to Pay $5.12 Million to Settle False Claims Act Lawsuit
Brentwood, Tennessee-area surgical center management company Meridian Surgical Partners has agreed to pay a total of $5.12 million to settle allegations of healthcare fraud. Healthcare fraud continues to reign as the top-grossing area of recovery under the False Claims Act, and the Department of Health and Human Services – in […]
September 26, 2014
General
Department of Justice Takes Aim at Physician Investors in Anti-Kickback Crackdown
We recently reported on the government’s decision to intervene in a False Claims Act lawsuit against spinal surgeon Aria Sabit, which involved allegations of medically unnecessary spinal fusion operations in exchange for kickbacks from the Reliance Medical Group. In a simultaneous and related event, the Department of Justice filed its […]
September 25, 2014
General
Eighth Circuit Adds to Rule 9(b) Confusion in Thayer v. Planned Parenthood of the Heartland
If you’ve been following along, you’ll know that the federal Courts of Appeal are engaged in a near-even split with regard to the applicability of Federal Rule of Civil Procedure 9(b) in the False Claims Act context. In general, a civil plaintiff must set forth general facts in a complaint […]
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