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business fraud 125 articles

Nation’s largest nursing home pharmacy provider settles whistleblower lawsuit for $124.24 million

Omnicare Inc., the country’s largest provider of prescription drugs and pharmacy services to nursing homes, has agreed to pay the U.S. more than $124 million to settle whistleblower allegations that it defrauded federal and state Medicare and Medicaid programs through false billings and engaged in illegal kickback schemes. The latest settlement marks the third time in one year that the Cincinnati-based corporation has agreed to settle whistleblower allegations brought against it under the federal False Claims Act, which contains provisions allowing individuals to sue on behalf of the U.S. government when they have good, original evidence of wrongdoing. Additionally, Omnicare ... Read More

U.S. Supreme Court to review whistleblower lawsuit against KBR, Halliburton

The U.S. Supreme Court said that it will review a whistleblower lawsuit against KBR Inc. (Kellogg, Brown and Root) and Halliburton Co. alleging the corporations overbilled the U.S. government for work they performed on water-purification projects at two camps in Iraq. The Justices said on Tuesday that they will consider whether the lawsuit, filed by former KBR employee Benjamin Carter under the federal False Claims Act, should move forward. KBR, a global engineering and construction firm, has appealed the decision of a lower court reinstating Mr. Carter’s whistleblower lawsuit. According to the Associated Press, a federal judge had tossed the ... Read More

Celgene’s bid to have whistleblower case tossed is invalid, U.S. argues

The U.S. government threw its support behind a whistleblower lawsuit filed under the False Claims Act against drugmaker Celgene Corp. after the defendant asked a California federal court to throw out the complaint. The lawsuit, filed in 2010 by former Celgene sales representative Beverly Brown, alleges the company illegally marketed its cancer drugs Thalomid and Revlimid for off-label uses and then submitted reimbursement claims to Medicare and Medicaid for the prescriptions. Only drugs that are prescribed for purposes approved by the U.S. Food and Drug Administration (FDA) are reimbursable by federal health care programs. Drugs sold for off-label or “unapproved” ... Read More

Kentucky hospital agrees to pay $41 million for allegedly performing unnecessary heart procedures

A Kentucky hospital has agreed to pay the U.S. nearly $41 million to settle allegations that it billed federal and state health care programs millions of dollars for medically unnecessary heart stents and diagnostic catheterizations and for violating anti-kickback laws by rewarding physicians for referrals. The case is likely the largest ever in the U.S. involving fraudulent claims for unneeded heart procedures. King’s Daughters Medical Center in Ashland, Ky., part of the Ashland Hospital Corp., will pay $40.9 million to resolve the allegations, the U.S. Justice Department said. The U.S. alleged that King’s Daughters Medical Center billed Medicare and Kentucky’s ... Read More

Medtronic whistleblower gets $1.73 million for exposing illegal kickbacks, false claims

A whistleblower who exposed illegal kickback schemes and false claims at Minnesota-based Medtronic Inc. will receive $1.73 million as his share in the government’s nearly $10-million recovery, the U.S. Justice Department said. Medtronic, a major manufacturer of pacemakers and defibrillators, agreed to pay the U.S. government $9.9 million to resolve allegations brought by Adolfo Schroeder, a former Medtronic employee, under the False Claims Act. The Act’s qui tam or “whistleblower” provisions allow individuals with knowledge of fraud and other wrongdoing targeting U.S. agencies and programs to sue on behalf of the federal government. In return, whistleblowers receive up to 30 ... Read More

Whistleblower claims Nike fired him for reporting safety concerns

A whistleblower who sued footwear giant Nike claiming the company fired him for reporting unsafe working conditions at its 600-acre headquarters in Beaverton, Ore., should receive a jury verdict within the next few days, the Portland Business Journal reports. Douglass Ossanna, who worked for Nike for years as an electrician, says the company fired him in 21013 in retaliation for raising safety concerns. He seeks economic damages of $572,000, non-economic damages of $1.5 million, and punitive damages up to $25 million from the company. His lawyer argued that Mr. Ossanna reported adverse working conditions to six different Nike managers over ... Read More

U.S. government joins whistleblower complaint against technology contractor

The federal government has filed a complaint against information technology contractor CA. Inc. for violations of the False Claims Act, accusing the company of intentionally overcharging the government for its products and services over the course of several years. The government’s lawsuit was prompted by another complaint brought by a former CA employee who filed a lawsuit against the company under the whistleblower provisions of the False Claims Act. The U.S. government contracted CA in September 2002 to provide software licenses, maintenance, training, and consulting services to the U.S. Departments of Defense, Energy, Health And Human Services, and Labor. According ... Read More

Alabama nurse receives $15 million whistleblower reward for exposing Medicare fraud

A Monroeville, Ala., nurse who filed a False Claims Act lawsuit against a home health care company will receive more than $15 million for her part in helping the U.S. recover $150 million in funds that she and others claim were fraudulently taken from Medicare and other health care programs. April Brown filed her whistleblower lawsuit in a federal court in Birmingham in 2010, alleging that her employer, Baton Rouge, Louisiana-based Amedisys Inc. billed for health care services that she hadn’t provided or were provided but not medically necessary. Ms. Brown, a home health care nurse in the Monroeville area, ... Read More

U.S. Commodity Futures Trading Commission resolves its first whistleblower case

A whistleblower who provided tips that led to the first-ever recovery by the U.S. Commodity Futures Trading Commission (CFTC) since its two-year-old whistleblower program was created will receive $240,000. On Tuesday CFTC Chairman Mark Wetjen said that the whistleblower provided valuable information about violations of the Commodity Exchange Act. The whistleblower’s identity has not been disclosed in compliance with regulations that require confidentiality to protect the whistleblower from retaliation. “I am pleased to announce this first award, which illustrates that the CFTC’s Whistleblower Program is a valuable resource for the American public. Information received under the Whistleblower Program helps the agency ... Read More

Whistleblower lawsuit alleges company defrauded Medicare with false power wheelchair prescriptions

The U.S. government has intervened in a whistleblower lawsuit against Orbit Medical Inc. and its former vice president Jake Kilgore, alleging the company knowingly defrauded Medicare and other taxpayer-funded health care programs by altering and forging physician prescriptions and other required documentation in order to boost sales of its power wheelchairs and accessories. According to the U.S. Justice Department, “Orbit Medical sales representatives, at Kilgore’s direction and encouragement, knowingly altered physician prescriptions and supporting documentation to get Orbit Medical’s power wheelchair and accessory claims paid by Medicare, the Federal Employees Health Benefits Plan, and the Defense Health Agency.” Medicare will ... Read More