Tagged Articles

false claims act 578 articles

Veterans Sue 3M for Defective Combat Earplugs

Department of Defense contractor 3M faces a series of lawsuits representing hundreds of veterans who allege the company provided U.S. armed forces with defective combat earplugs that failed to work as intended and led to hearing loss and tinnitus as a result. The lawsuits, filed in multiple states including Maryland, Texas, South Carolina and Florida, follow a $9.1 million settlement between 3M and the U.S. government over the same dual-ended Combat Arms Earplugs, Version 2. That agreement resolved allegations that Aearo Technologies, a company that 3M later bought, violated the False Claims Act by selling the U.S. defective combat earplugs ... Read More

Nursing Home Chain Settles ‘largest worthless services’ case in U.S. history

A Tennessee nursing home chain will pay the U.S. and Tennessee more than $18 million in a record settlement that federal officials called the “largest worthless services” case in U.S. history. Vanguard Healthcare, five nursing homes it owns and operates, and two of the company’s executives engaged in a scheme that not only harmed vulnerable patients but cheated Medicare and Medicaid out of millions of dollars, federal prosecutors alleged. Among the Justice Department’s many findings, the Vanguard nursing homes allegedly involved in the scheme failed to administer medications to residents as prescribed; failed to provide standard infection control; failed to ... Read More

Whistleblower Helps U.S. Nab California Urology Chain For Medicare Fraud

A whistleblower’s False Claims Act lawsuit has led to a $1.85 million settlement between Skyline Urology and the U.S. government, resolving allegations that the Torrance, California-based health care company deliberately overbilled Medicare. Federal prosecutors investigated the whistleblower’s claims and alleged that from January 1, 2013, through 2016, Skyline Urology systematically billed Medicare for evaluation and management services in violation of federal rules. Although some exceptions exist, health care providers are not permitted to bill Medicare for evaluation and management services on the same day a related procedure is performed. This is because the cost of evaluating a patient is included ... Read More

Prime Health Care Settles Another Whistleblower Lawsuit Alleging Medicare Fraud

Two employees of a Philadelphia hospital who filed a whistleblower lawsuit against the hospital’s parent company and its founder have helped the U.S. government recover $1.25 million in Medicare funds. Prime Health Care Services and Dr. Prem Reddy, the company’s founder and CEO, agreed to settle the whistleblower lawsuit Feb. 14, resolving allegations that two of its hospitals, Lower Bucks Hospital in Bristol Township, Pennsylvania, and Roxborough Memorial Hospital in Philadelphia, engaged in schemes to increase their Medicare billings. According to federal prosecutors, the whistleblowers alleged that the hospitals admitted Medicare beneficiaries who visited the ER when they should have ... Read More

Whistleblower Instrumental in Recovering $2.5 Million in Taxpayer Funds From SC University

A whistleblower was instrumental in helping the U.S. government recover $2.5 million in taxpayer funds from a private South Carolina “Christian” university that allegedly engaged in unlawful incentive-based recruitment schemes. According to the U.S. Department of Justice, North Greenville University (NGU) entered a settlement agreement with the federal government resolving a False Claims Act lawsuit initiated by whistleblower Maurice Shoe. The complaint alleged NGU made payments in the form of commissions, bonuses, and other incentives to a company named Joined Inc., a marketing and recruiting company for Christian colleges and universities. The unlawful payments were based on the company’s success in ... Read More

Georgia Hospital Settles False Claims Act Suit, Agrees to Pay $5 Million

A North Georgia hospital will pay $5 million to settle allegations it violated the False Claims Act by engaging in improper financial relationships with referring physicians. Union General Hospital of Blairsville, Georgia, fell under scrutiny when federal authorities detected suspicious activity surrounding the abnormally high quantities of opioid drugs and Xanax being prescribed in connection with the hospital. Investigations by the FBI and other federal agencies led to the arrest of Union General Hospital CEO John Michael Gowder and two physicians — Dr. David Gowder and Dr. James Heaton. The three men now face federal charges of illegally prescribing thousands ... Read More

Whistleblower Helps U.S. Recover $8.1 Million from California Hospital Group

A whistleblower lawsuit accusing a Los Angeles-based hospital group of engaging in unlawful financial arrangements has led to an $8.1 million settlement with the U.S. Government. Avanti Hospitals LLC and six of its owners agreed to pay the U.S. $8.1 million to settle whistleblower allegations that they violated the Anti-Kickback Statute, the Physician Self-Referral Law (also known as the Stark Law), and the False Claims Act. The lawsuit, filed by Dr. Joshua Luke, the former CEO of Gardena Hospital, alleged that Avanti, Gardena Hospital, and at least two other Avanti affiliates bribed a high-referring physician with payments that exceeded the ... Read More

Walgreens Settles Two Whistleblower Lawsuits for $269.2 Million

Walgreens Boots Alliance, the holding company that owns the controlling shares of Walgreens Drug Stores and several other health care companies, will pay $269.2 million to settle two separate whistleblower lawsuits. In one case, Walgreens agreed to pay $209.2 million to settle allegations that it fraudulently billed Medicare, Medicaid, and other government health care programs for hundreds of thousands of insulin pens that beneficiaries did not need. According to the U.S. Attorney’s Office for the Southern District of New York, Walgreens configured its electronic systems so that its pharmacists couldn’t dispense less than a full box of five insulin pens, ... Read More

U.S. Supreme Court Won’t Revive Trinity Industries Guardrail Case

Trinity Industries will no longer have to fend off a $663.4 million judgment against it after the nation’s top court rejected a whistleblower’s bid to revive a 2014 jury verdict accusing the guardrail manufacturer of defrauding the government. The U.S. Supreme Court Justices declined to hear whistleblower Joshua Harman’s final appeal to leave the dangerous-guardrail judgment intact after it had been tossed by the Fifth Circuit Court of Appeals in New Orleans in 2017, according to Reuters. Mr. Harman sued Trinity Industries in 2012 under the whistleblower provisions of the False Claims Act, alleging that the Texas-based manufacturer defrauded the ... Read More

U.S. Attorney General Nominee Vows to Uphold False Claims Act

Stepping back from previous criticism of the False Claims Act, William Barr, Donald Trump’s nominee for U.S. Attorney General, pledged he would stand by the law that authorizes whistleblowers to sue on behalf of the U.S. government and American taxpayers. Mr. Barr, who served as the attorney general in President George H.W. Bush’s administration from 1991 to 1993, once described the False Claims Act as an “abomination” and displayed an appetite to challenge the law, which he viewed as unconstitutional. In 1989, Mr. Barr wrote that the whistleblower provision of the False Claims Act replaced the Judicial Department’s prosecutorial discretion ... Read More