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May 5, 2014
False Claims Act Legal News
Federal Circuit Courts Split on Pivotal “First to File” Issue
The False Claims Act is a piece of federal legislation. Therefore, lawsuits arising under its provisions are settled by the federal District, Circuit, and Supreme Courts. While FCA Supreme Court precedent is continuing to emerge each year, District and Circuit courts are regularly faced with issues directly impacting whistleblowers and […]
May 2, 2014
Healthcare Fraud
Pharmacy Company Astellas to Pay $7.3 Million in False Claims Act Settlement
The Department of Justice, in concert with several states’ attorneys general, recently announced a settlement against Astellas Pharma U.S., Inc., based in Northbrook, Illinois. The case involved substantial allegations of off-label marketing practices aimed at pediatric federal healthcare patients. As you well know, it is considered a violation of the […]
May 1, 2014
False Claims Act Legal News
Eighth Circuit Confirms $8 Million Whistleblower Reward
In a price-fixing case originating in 2004, two whistleblowers have finally reaped their reward under the False Claims Act and its qui tam provisions. In Rille, ex rel. United States v. PricewaterhouseCoopers, LLC, et al., two relators successfully defeated the DOJ’s motion to preclude recovery of the whistleblower reward citing […]
April 30, 2014
Healthcare Fraud
Louisiana-Based Home Healthcare Company Amedisys to Pay $150 Million to Settle False Claims Act Allegations
Amedisys, Inc. and its affiliates have agreed to pay $150 million to the federal government in order to settle allegations of fraud and misconduct. According to statements revealed earlier this month, the Department of Justice settled with the home healthcare and hospice provider after uncovering several years’ worth of improper […]
April 29, 2014
Mortgage Fraud
Office of Inspector General Offers Suggestions to the DOJ to Combat Mortgage Fraud
In yesterday’s post, we began examining a recent audit of the Department of Justice with regard to its mortgage fraud division. Specifically, the Office of Inspector general reviewed several reports offered by the DOJ since the 2008 housing bubble burst and questioned the Department’s record-keeping and prioritization of this devastating […]
April 28, 2014
Mortgage Fraud
Office of Inspector General Reveals Several Weak Areas of DOJ’s Response to Mortgage Fraud
We regularly report on the effects of mortgage fraud, including several high-profile cases between the Office of Housing and Urban Development (HUD) and several large banking institutions. Mortgage fraud can occur in any number of ways, including false assertions by lenders that borrowers should qualify for mortgage insurance or failing […]
April 25, 2014
Healthcare Fraud
Pfizer Unsuccessful in Avoiding Off-Label Marketing False Claims Act Case
In a recent False Claims Act case involving the mental health drug Geodon, Pfizer reportedly lost its bid to have the case dismissed after unsuccessfully arguing, among other claims, that relators failed the “first-to-file” and “public disclosure” requirements contained within the language of the FCA. Specifically, the FCA precludes whistleblowers […]
April 24, 2014
Environmental Fraud
Unsealed Whistleblower Complaint Reveals Allegations of Intentional Carcinogenic Pollution by DuPont
The False Claims Act is drafted to address nearly any type of false claim made by an individual or corporation to the federal government. The FCA was originally implemented to address wartime misconduct, but has since grown to include many other instances of fraud. In today’s case, we explore a […]
April 23, 2014
Military Contractor Fraud
Hawker Beechcraft Unsuccessfully Attempts to Avoid FCA Liability Through Bankruptcy
Late last month, a federal judge reversed a bankruptcy court’s decision to alleviate military aircraft contractor Hawker Beechcraft from liability under a False Claims Act whistleblower lawsuit. The bankruptcy court relied on the fact that military contractor Hawker Beechcraft was recently sold to Textron, Inc. as part of its Chapter […]
April 22, 2014
Military Contractor Fraud
Manufacturer of Black Hawk Helicopters, Sikorsky Aircraft, Settles False Claims Act Lawsuit
The famed manufacturer of the Sikorsky Black Hawk helicopter, Sikorsky Aircraft, has agreed to pay $3.5 million to settle claims it overcharged the U.S. government for services and parts for the powerful utility aircraft. The settlement occurred following a lawsuit filed under the qui tam provisions of the False Claims […]
April 21, 2014
Healthcare Fraud
Detroit-Area Physician Pleads Guilty to Medicare Fraud and Violations of the False Claims Act
When a physician, hospital, or pharmaceutical company engages in fraud against the U.S. government, it is not uncommon for the defendant to face additional penalties and sanctions beyond mere repayment of taxpayer dollars. For example, Medicare fraudsters may face incarceration and probation for engaging in this type of crime – […]
April 18, 2014
IRS Whistleblower
IRS Data Reveals Sharp Disparity Between Number of Fraud Reports and Whistleblower Rewards
Noting the success of the federal False Claims Act, Congress enacted a similar IRS whistleblower program in 2007 under the Tax Relief and Healthcare Act, which allows individuals to report tax fraud and evasion in exchange for a possible cut of the eventual recovery. The program has maintained some success […]
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