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June 13, 2014
General
Massachusetts Attorney General Alleges False Claims Against Contractor Universal Drywall
The Massachusetts Attorney General’s office recently commenced a lawsuit under the Commonwealth’s False Claims Act against general contractor Universal Drywall, LLC. The lawsuit alleges that the defendant engaged in unfair tactics in bidding on government jobs, resulting in fraudulent claims for reimbursement. The case represents a unique perspective on the […]
June 12, 2014
General
AIG Alleged to Have Lied During Government Bailout Negotiations; False Claims Act Lawsuit Unsealed
American International Group, Inc., known as AIG, is facing a False Claims Act lawsuit alleging it failed to properly reveal certain licensing insufficiencies during 2008 bailout negotiations with the federal government. A whistleblower lawsuit, filed in 2009, was recently unsealed following the government’s decision not to intervene. The relator in […]
June 11, 2014
General
Delaware Court Unseals Qui Tam Case Alleging False Claims About Unused Gift Cards
In a recently-unsealed whistleblower lawsuit initiated under the laws of Delaware, dozens of companies organized under Delaware law are facing possible exposure to liability for failing to escheat the value of unclaimed gift cards to the State. Escheat is a term referring to the legal requirement imposed by Delaware’s unclaimed […]
June 10, 2014
General
Kentucky-based King’s Daughters Medical Center Settles False Claims Act Allegations With $41 Million Payout
In a landslide victory for taxpayers, a Kentucky hospital found dabbling in expansive and costly healthcare fraud has agreed to pay $41 million to settle the allegations. According to reports, King’s Daughters Medical Center, located in Ashland, Kentucky, was engaging in the frightening practice of ordering and performing unnecessary heart […]
June 9, 2014
General
District Court Judge Refuses to Dismiss False Claims Act Claim Against Military Contractor
Just last month, a federal District Court in Louisiana declined a dismissal attempt by Masonry Solutions International, LLC in an ongoing False Claims Act case alleging fraud under a contract with the Army. The defendant’s motion hinged on a civil procedure technicality which the court described as “excusable neglect” and permitted […]
June 6, 2014
General
Device Maker Medtronic, Inc. Agrees to Pay $9.9 Million to Settle False Claims Act Violations
Medical device maker Medtronic, Inc. recently settled a case under the False Claims Act alleging unlawful monetary kickbacks for physicians willing to implant its products in their cardiac patients. Unlawful kickback schemes are one of the most common scenarios triggering liability under the FCA and the federal government has worked […]
June 5, 2014
General
Tennessee-Based First Call Ambulance Services to Settle False Claims Act Allegations for $500,000
In a recent case out of the Middle District of Tennessee, ambulance provider First Call Ambulance Service has agreed to pay $500,000 to settle several claims of Medicare and Medicaid fraud. The case was commenced by an undisclosed whistleblower who will share in up to 30 percent of the settlement […]
June 4, 2014
General
Department of Justice Joins False Claims Act Lawsuit Against CA Technologies
In its May 29th press release, the Department of Justice announced its intention to pursue claims against technology giant CA Technologies for alleged misrepresentations during negotiations for the purchase of software licenses. CA Technologies provides software and technology to several government agencies, including the Department of Labor, Department of Defense, […]
May 28, 2014
General
Department of Health and Human Services Proposes Enhancements to Its Enforcement Powers
As we discussed recently, the federal government has implemented several important measures to combat the rampant healthcare fraud plaguing American taxpayers. One such program, known as the H.E.A.T. Task Force, is administered jointly by the U.S. Attorney General’s Office and the Department of Health and Human Services (HHS). As an […]
May 27, 2014
General
Records Unsealed in False Claims Act Case Alleging Grant Fraud by USBR
In a complaint unsealed on May 1st, the former superintendent of the Alcova Reservoir — located in Natrona County, Wyoming – has alleged fraud and misconduct on the part of the Natrona County Road and Bridge Department. While the U.S. government has declined to intervene in the case, the whistleblower […]
May 26, 2014
General
Florida Health System to Pay $7 Million to Resolve Violations of Stark Law
As we have discussed in the past, the federal Stark Law often intersects with the False Claims Act. In a recent case out of Florida, All Children’s Health System (ACHS) has agreed to remit $7 million to both the state and federal governments following allegations of Stark Law violations and […]
May 23, 2014
General
Reunion Mortgage to Pay $1.04 Million to Settle False Claims Act Allegations
In a recent case out of California, mortgage lender Reunion Mortgage, Inc. and its former affiliates have agreed to pay $1.04 million to settle allegations of False Claims Act violations. The case originated pursuant to an investigation by the Department of Housing and Urban Development’s Civil Fraud Division and resulted […]
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