New York State and City will pay the federal government $540 million to settle allegations they submitted false claims under the federal Medicaid program.

The false claims concerned reimbursements for school-based programs like speech therapy and transportation between 1990 and 2001. The settlement stemmed from two lawsuits filed by whistleblowers.

The settlement is a record federal recovery by the U.S. Justice Department for the Medicaid program.

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