Pacific Medical Buildings LLC (PMB), PMB Lakeway LLC, RD Development Partners LLC, Lakeway Management LLC, J&L Rush Family Partnership LP, Jeff Rush, and Brad Daniel have agreed to pay the United States $1.1 million to resolve allegations that they violated the False Claims Act by improperly helping to obtain a loan insured by the Federal…
U.S. Supreme Court Sides With Whistleblower On Extending Statute of Limitations
The US Supreme Court ruled Monday that suits brought under the U.S. False Claims Act by whistleblowers, in which the government does not intervene, are not subject to a shorter statute of limitations than suits in which the government does intervene. Under the False Claims Act, a whistleblower must file suit either six years from when the fraud is…
U.S. Veterans Sue Manufacturer of Combat Earplugs After Whistleblower Suit Exposes Fraud
When U.S. veterans read about a $9 million whistleblower settlement between the government and 3M involving allegations that 3M had sold the U.S. government defective “Combat Arms Ear Plugs” … they put two-and-two together and determined that 3M’s faulty ear plugs had resulted in hearing loss and related health problems. Having learned about the fraud…
U.S. Supreme Court Rejects Petitions to Hear Cases on the False Claims Act’s Materiality Requirement
The U.S. Supreme Court rejected two petitions urging it to clarify the impact of its 2016 decision of Universal Health Servs., Inc. v. United States ex rel. Escobar, which interpreted the U.S. False Claims Act, an Act that allows whistleblowers to sue companies and individuals that defraud the government. In Escobar, the Court emphasized that frauds alleged…
U.S. Supreme Court Hears Arguments on False Claims Act Statute Of Limitations
The U.S. Supreme Court heard oral arguments Tuesday in Cochise Consultancy v. United States, ex rel. Hunton to determine the question of how to apply the rule extending the statute of limitations from six to ten years for lawsuits brought by whistleblowers under the U.S. False Claims Act. Under the U.S. False Claims Act, a whistleblower must file suit…
DOJ False Claims Act Probe Into Drug Related to Parkinson’s Disease
SEC filings by Acadia Pharmaceuticals disclosed that the United States Department of Justice is conducting a False Claims Act investigation in connection with the marketing of Nuplazid, Acadia Pharmaceutical’s drug approved three years ago to help treat Parkinson’s patients suffering from debilitating psychosis. The Food and Drug Administration (FDA) approved Nuplazid in 2016 despite a…
Defendant Asks U.S. Supreme Court to Revisit Constitutionality of the False Claims Act
Under the United States False Claims Act, a whistleblower can sue a corporation for defrauding the federal government and she or he can continue the lawsuit on behalf of the federal government even after the government chooses not to intervene in the litigation. The U.S. Supreme Court specifically upheld the False Claims Act as constitutional…
Walgreens Pays $60 Million for Overcharging Government for Prescription Drugs
Because of the hard work and bravery of a whistleblower, Walgreens agreed to pay $60 million to settle allegations that it overcharged government healthcare plans for prescription drugs. The agreement was part of a larger investigation by the United States Attorney’s Office for the Southern District of New York and numerous state attorneys’ general offices. Last year, Walgreens also…
Trump’s AG Pick Tells Senate: He Will Support False Claims Act
President Donald Trump’s attorney general nominee William Barr pledged at his confirmation hearing on Tuesday to support and uphold the False Claims Act, a law that lets whistleblowers file lawsuits to help the federal government recover losses due to fraud, and that rewards them with a percentage of the proceeds if such suits are successful….
Sprint Tax Whistleblower Settlement: $330 Million for New York
The New York Attorney General’s Office today announced that Sprint-Nextel was paying New York State and local governments a record $330 Million to resolve a longstanding whistleblower suit alleging that Sprint-Nextel knowingly under-collected and under-reported its New York sales taxes for years. The New York Attorney General’s office intervened in the action in 2012, litigating…