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Talking-to-Patient-300x186The Department of Justice (DOJ) has recently resolved a case involving the largest settlement of alleged violations of the Anti-Kickback Statute by a skilled nursing facilities company in the United States. The skilled nursing company, Plaza Health Network, and its former president and executive director have agreed to pay $17 million to resolve allegations that the company violated the False Claims Act (FCA) by submitting claims to Medicare and Medicaid for patients that were referred to the company through illegal kickbacks. The whistleblower, who brought the case under the qui tam provisions of the FCA, will receive $4.25 million as his share of the recovery. Continue reading

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This weeYellow-and-Red-Pills-150x150k the US Court of Appeals for the Fourth Circuit affirmed a South Carolina District Court judgment against Tuomey Healthcare System. The damages and penalties against Tuomey totaled $237,454,195 as decided in United States ex rel. Drakeford v. Tuomey Health Care System, Inc. A jury had found the defendant liable under the False Claims Act for their reporting of false claims to Medicare. The decision ends a case which has been under litigation for nearly ten years. Continue reading

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Stethoscope 2AstraZeneca and Cephalon have both reached settlements with the US Department of Justice (DOJ), totaling $54 million. AstraZeneca has agreed to pay the United States and participating states a total of $46.5 million with interest. Cephalon, which is now owned by Teva, has agreed to pay the United States and participating states a total of $7.5 million. The companies were accused of deliberately underreporting Average Manufacturer Prices (AMPs) to public health programs. The cases were brought by a whistleblower, Ronald J. Streck, under the qui tam provisions of the False Claims Act. Continue reading

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VMware aHedge-Fund-Manager-Holding-Moneynd Carahsoft Technology Corp. reached a settlement of $75.5 million with the General Services Administration (GSA) on Tuesday, June 30. This settlement resolves allegations made by a former Vice President at VMware that the companies violated the False Claims Act (FCA). The whistleblower alleged that the cloud service providers overcharged the federal government for software products and related services from 2007 through 2013. Although VMware still asserts that the allegations are false, they have agreed to pay the settlement money in order to put an end to the lawsuit. Continue reading

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Toviaz-Off-Label-PromotionIn the largest False Claims Act settlement in which the government did not intervene, DaVita Healthcare Partners has come to an agreement to pay the government $450 million. The false claims lawsuit involved DaVita’s largest division, DaVita Kidney Care. The division was accused of intentionally wasting medicine in order to defraud federal healthcare programs out of millions of dollars. This settlement concludes the false claims act cases that DaVita has defended in the past years, paying out nearly $1 billion to settle the three whistleblower lawsuits. Continue reading

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Supreme-Court-Pillars-150x150 3The Sixth Circuit has held that a construction contractor’s violation of the Davis-Bacon Act can also create liability under the False Claims Act (FCA). U.S District Judge Kevin H. Sharp issued a judgment ordering Circle C Construction, LLC to pay the United States a total of $762,894 for violation of the FCA. These Davis-Bacon Act and FCA violations were connected to Circle C’s construction project on the Fort Campbell military base. Continue reading

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Pill-Bottle-Money1-150x150Inspire Pharmaceuticals, a specialty pharmaceutical company with its principal place of business in Lake Forest, Illinois, has reached a settlement agreement of $5.9 million with the US Department of Justice (DOJ). The settlement money will go to the United States and various state governments. According to the US District Attorney’s press release, Inspire admitted to starting a marketing campaign in 2008 to broaden the customer base for AzaSite by focusing on, among other things, AzaSite’s claimed anti-inflammatory effects, which were not approved by the Food and Drug Administration (FDA), and were not demonstrated by substantial evidence or substantial clinical experience. INSPIRE further admitted that AzaSite was prescribed for blepharitis, and that claims to treat blepharitis were submitted to federal healthcare programs for payment. This case was initially brought forward by a whistleblower in 2010 under the qui tam provisions of the False Claims Act. The United States quickly intervened, taking over the case. Continue reading

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Hospital_billingChildren’s National Medical Center Inc. has agreed to pay $12.9 million to settle two allegations of defrauding the government in violation of the False Claims Act. The first claim alleged that Children’s National, which has since changed its name to National Health System, inflated its cost reports which forced the Department of Health and Human Services to increase its reimbursement payments. The second claim alleged that Children’s National over reported the number of beds it had available, causing higher payments from the Virginia and D.C. Medicaid Programs and Medicare. Washington D.C. based Children’s National provides pediatric care throughout the D.C area. The Department of Justice (DOJ) alleged that Children’s National cost the Medicare Trust Fund millions of taxpayer’s dollars. Continue reading

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A judgment against Trinity Industries for $663.4 million was made on June 9, 2015 for violations of the False Claims Act. According to whistleblower Joshua Harman, Trinity Industries failed to report a change made to highway guardrails to the Federal Highway Administration (FHWA). The change that Trinity Industries failed to report has caused the guardrails to malfunction. Instead of operating to absorb the impact of a crash, the guardrail heads, or end terminals, have worked almost as spears, piercing through the car and causing several fatalities.

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The UnitedHousing-Fr4aud 2 States Department of Justice (DOJ) has filed a lawsuit against Quicken Loans, alleging that Quicken’s approval of inappropriate loans resulted in millions of dollars in loss to the government. Michigan-based Quicken Loans, the third-largest mortgage lender in the country, allegedly made hundreds of these loans from September 2007 until December 2011 through the Federal Housing Administration (FHA) program. The complaint alleges that Quicken disregarded FHA rules when approving loans. This suit is one of many recently filed by the DOJ under the False Claims Act against several of the nation’s largest lenders. Continue reading