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Flase Claims Act 14 articles

Whistleblower Allegations Lead To Prison Sentence, Fines For Medical Equipment Vendor

The owner of an Iowa medical supply store has been sentenced to more than three years in prison for submitting falsified documents to federal authorities investigating fraud allegations raised by a whistleblower in a False Claims Act lawsuit. According to The (Cedar Rapids) Gazette, James O’Connor, 64, was sentenced to 37 months in federal prison and ordered to pay $350,000 in restitution to the Medicare and Medicaid programs. Mr. O’Connor owned and operated O’Connor Medical Supply Inc., a durable medical equipment vendor in the Des Moines, Iowa area. A whistleblower filed a False Claims Act suit against Mr. O’Connor and ... Read More

Whistleblower Suit Helps U.S. Recover $16 Million From Defense Contractor

A whistleblower’s False Claims Act lawsuit filed on behalf of the U.S. government against a Virginia Beach-based defense contractor and its subsidiaries has settled for $16 million, resolving allegations that the companies fraudulently obtained small-business contracts and engaged in illegal bid rigging. According to the U.S Department of Justice (DOJ), the settlement with contractor ADS Inc. is one of the largest ever in connection with small-business contracting fraud. The whistleblower lawsuit was filed in 2013, alleging ADS conspired with small businesses that it owns and controls to apply for several valuable defense contracts reserved for small businesses. ADS subsidiaries Mythics ... Read More

Allergan Pays $13M To Settle Whistleblower Suit

A whistleblower lawsuit filed by two Philadelphia ophthalmologists against multinational drug corporation Allergan has been settled in court, with the defendant agreeing to pay more than $13 million. The settlement resolves allegations that Allergan, which is headquartered in Dublin, Ireland, and Parsippany, New Jersey, illegally promoted its Restasis eye drug and other eye drugs for off-label purposes and provided kickbacks to physicians for writing more prescriptions for the drugs. According to The Philadelphia Inquirer, the lawsuit was brought by Herbert J. Nevyas and Anita Nevyas-Wallace, a father and daughter team of ophthalmologists. The pair filed the suit under the whistleblower ... Read More

Whistleblower False Claims Act Suit Against Maine Hospital Proceeds

A whistleblower who filed a False Claims Act lawsuit against a Maine hospital alleging it fraudulently overbilled Medicare will see her complaint move forward after a federal judge dismissed a motion by the defendants to toss the complaint. Jennifer Worthy, former manager of patient accounts at Mercy Hospital in Portland, Maine, filed her whistleblower complaint in 2014 against the hospital, its parent company Eastern Maine Healthcare Systems, and two medical billing companies – Accretive and California Healthcare Billing. She alleges Mercy Hospital and the other defendants engaged in a number of schemes to overcharge Medicare, including “unbundling” bills for medical ... Read More

U.S., Mass. May Intervene In Landmark False Claims Act Case Against Universal Health Services

The governments of the United States and Massachusetts appear poised to intervene in a closely watched False Claims Act case in which two whistleblower plaintiffs accuse Universal Health Services of using unlicensed and unqualified therapists in its facilities, resulting in the submission of false claims to Medicaid. Julio Escobar and Carmen Correa filed the suit against the hospital management company under the whistleblower provisions of the False Claims Act, which permits private parties to sue on behalf of the federal government. They brought the lawsuit after Yarushka Rivera, Ms. Correa’s daughter and Mr. Escobar’s step-daughter, died of an adverse reaction ... Read More

Whistleblower Lawsuit Recovers $21 Million In Medicaid Funds From Medical Supply Companies

The U.S. government reached a $21-million settlement Friday with two medical product companies, resolving whistleblower allegations that they engaged in mutually beneficial kickback schemes and other “fraudulent conduct” to boost profits. Hollister Inc., a manufacturer of disposable health care products, agreed to pay the U.S. $11.4 million to settle the False Claims Act complaint, while Byram Healthcare Centers Inc., a medical goods supplier, will pay the U.S. $9.37 million and the State of California $127,117. The settlement with Hollister resolves allegations that it paid kickbacks to Byram in return for marketing promotions, campaigns, and other unlawful referrals of patients to ... Read More

Whistleblower Accuses Novartis Of Another International Bribery Scheme, This Time in Turkey

Swiss drug giant Novartis bribed government-run hospitals in Turkey to increase prescriptions of it drugs – a scheme that gave the multinational company a market advantage worth $85 million, an anonymous whistleblower alleges. According to Reuters, the unnamed whistleblower made the allegations in a 5,000-word email to Novartis CEO Joe Jimenez and audit and compliance board member Srikant Datar. The whistleblower claims Novartis paid the Turkish firm Alp Aydin Consultancy nearly $300,000 in 2013 and 2014 to persuade Turkish health officials to add Novartis drugs to the formularies in government-run hospitals. Novartis also hired the relatives of high-prescribing doctors into ... Read More

NY Construction Contractor Pays $5 Million To Settle Whistleblower Case

A Syracuse, N.Y., construction firm and government contractor has agreed to pay the U.S. $5 million to resolve a False Claims Act lawsuit alleging that it orchestrated a scheme between company officials and affiliates to win contracting bids reserved for companies owned and operated by service-disabled veterans. According to the U.S. Justice Department, the fraudulent scheme involved Hayner Hoyt Corporation’s chairman and chief executive officer Gary Thurston, its president, Jeremy Thurston, employees Ralph Bennett and Steve Benedict, and two affiliate companies – LeMoyne Interiors and Doyner Inc. The whistleblower case alleged defendants conspired to take advantage of the service-disabled, veteran-owned ... Read More

Federal Judge Partially Rejects Whistleblower’s Fraud Suit Against Lance Armstrong

Cyclist Lance Armstrong will not have to pay back sponsorship money he received from the U.S Postal Service (USPS), a federal judge said Monday in a summary judgement that gave the disgraced Tour de France champion a partial victory in his ongoing legal battle with the U.S. government. Former teammate Floyd Landis sued Mr. Armstrong on behalf of the U.S. government in 2010, alleging the seven-time Tour de France champion defrauded the U.S. government by taking sponsorship money from the U.S. Postal Service while he was doping. Mr. Armstrong had for years denied rumors and allegations by others in the cycling word that he was doping before ... Read More

Whistleblower may appeal verdict in DuPont chemical plant case

The lawyer representing a whistleblower who lost his False Claims Act lawsuit against DuPont chemical company said the case isn’t dead and that his client would explore other options in holding the company liable for an alleged leak of cancer causing gases. Jeffrey Simoneaux, a 22-year employee of DuPont’s sulfuric acid plant in Burnside, La., filed the whistleblower lawsuit in 2012, alleging the company escaped paying fines for its environmental pollution by concealing the leaks from regulators. Mr. Simoneaux’s lawsuit asserted that DuPont owes the federal government $25,000 per day for every day its plant, situated near a residential neighborhood ... Read More