The Justice Department intervened this week in a whistleblower lawsuit against Tenet Healthcare and five hospitals, including one owned by Health Management Associates (HMA). The hospitals allegedly paid kickbacks to obstetric clinics to encourage the clinics to refer Medicaid patients to their hospitals for delivery services. The kickbacks were allegedly disguised as payments for services,…
$6.5 Million Settlement Reached in Virginia Navy Contracts Case
Vector Planning and Services Inc. (VPSI), a Virginia-based IT, systems engineering, and program management consulting firm, agreed to pay $6.5 million to settle allegations that it overbilled the government under several Navy contracts. The government alleged that, from 2005 to 2009, VPSI inflated claims for payment by improperly including direct costs that the government had…
Virginia Contractor Pays $3.2 Million to Settle Allegations of Falsely Billing the Army
MPRI Inc., a Virginia-based company under contract with the U.S. Army in Afghanistan, will pay $3.2 million to settle allegations that it submitted false labor charges by billing for work that was not performed. According to the allegations, between March 2005 and October 2010, MPRI billed for employees who were on leave and out of…
BP Faces $25 Million Lawsuit over “Double-Dipping” State Fund and Insurers
The oil company British Petroleum (BP) faces a $25 million lawsuit filed by the Minnesota Department of Commerce and the state’s Petrofund in an attempt to recover money that the company collected for cleaning up leaking underground petroleum tanks. The state alleges that, from 1988 to 2012, BP obtained over $25 million in reimbursements from…
South Korea Tuna Company Faces FCA Allegations of Defrauding US Government
Dongwon Industries, owner of StarKist Tuna and South Korea’s largest fishing company, has been accused by a whistleblower of making false statements to defraud the U.S. government in violation of the False Claims Act. According to the allegations, Dongwon improperly obtained U.S. vessel documentation and tuna fishing licenses by creating “paper companies,” using the acquired…
CareFusion Agrees to Pay $40.1 Million to Settle Off-Label Promotion and Kickback Claims
CareFusion, a California-based medical device manufacturer, agreed to pay $40.1 million under a multi-state and federal settlement to resolve allegations of improper marketing and kickback schemes. Although ChloraPrep was approved only for the preparation of surgical and injection sites, CareFusion allegedly marketed the product for uses that were not approved by the FDA, some of…
Whistleblower Lawsuit Alleges Defense Contractor Defrauded the Government
According to an unsealed qui tam case in federal district court in Chicago, defense contractor Northrop Grumman defrauded the U.S. government over a contract to a develop and improve a passive missile defense system for commercial airliners. The lawsuit claims that Northrop, despite being paid $62 million, virtually made no efforts to perform under the…
Kentucky Hospital Pays $16.5M to Settle FCA Allegations Involving Unnecessary Cardiac Procedures
Saint Joseph Health System Inc., a Southern Kentucky hospital, will pay $16.5 million to settle allegations that it submitted false claims to Medicare and Kentucky Medicaid after doctors performed unnecessary cardiac procedures on patients. The settlement also resolves allegations that the hospital violated the federal Stark Law and Anti-Kickback Statute by entering into sham agreements…
Government Sues KBR for Defrauding the Army in Iraq
The Department of Justice has filed a complaint against Kellogg, Brown & Root Services Inc. (KBR) and two Kuwaiti companies for violating the False Claims Act and the Anti-Kickback Act in connection with KBR’s contract to provide logistical support to the US Army in Iraq. KBR, a Texas-based engineering, construction, and services firm, was under…
GE Subsidiary Pays $2.7 Million to Settle FCA Allegations over Nuclear Reactor Design
General Electric Hitachi Nuclear Energy Americas LLC (GE Hitachi), a GE subsidiary that provides nuclear energy products and services, agreed to pay $2.7 million to settle allegations that it made false statements to the Department of Energy and the Nuclear Regulatory Commission (NRC) regarding an advanced nuclear reactor design. Between 2007 and 2012, GE Hitachi…