New York City has agreed to pay $1.375 million to settle a False Claims Act case alleging that the NYC Department of Education billed Medicaid for services that were not provided. According to the allegations, the NYC Department of Education billed Medicaid for bimonthly counseling sessions for special education students, but failed to provide those…
US Intervenes in 8 Lawsuits against HMA Alleging Unnecessary Inpatient Admissions and Kickbacks
The government has intervened in eight False Claims Act lawsuits against Health Management Associates Inc. (HMA), which operates 71 hospitals in 15 states, claiming that HMA paid kickbacks and billed federal health care programs for unnecessary hospital admissions. The government also intervened in allegations that HMA’s former CEO, Gary Newsome, directed HMA’s corporate officers to…
Alcoa to Pay $384 Million, Plead Guilty to FCPA Violations
Alcoa Inc., an international aluminum manufacturer, has agreed to pay $384 million to settle criminal and civil allegations brought by the SEC and DOJ that the company violated the Foreign Corrupt Practices Act by paying bribes to officials in Bahrain. According to the SEC’s investigation, the company paid more than $110 to Bahraini officials with…
U.S. Files Additional Claims against Novartis; BioScrip Pays $11.7M to Settle Kickback Allegations
The United States has filed additional health care fraud claims against Novartis Pharmaceuticals Corp. while reaching a settlement with BioScrip, Inc. in connection with a multimillion-dollar kickback scheme involving the prescription drug Exjade. The government’s amended complaint seeks treble damages and civil penalties, claiming that Novartis provided kickbacks to BioScrip in exchange for BioScrip recommending…
Florida Clinic Owner to Pay $400,000 to Settle FCA Allegations
Dr. Ravi Sharma has agreed to pay $400,000 to settle allegations that his clinics submitted bills for unnecessary services and services provided by unqualified personnel. Dr. Sharma allegedly allowed unqualified personnel to consult with patients and perform varicose vein injections, while billing for those services under his Medicare provider number. In addition, Dr. Sharma allegedly…
RBS Securities Japan Sentenced for Yen Libor Manipulation and Pays $50 Million Fine
A district court judge in Connecticut accepted a plea agreement and sentenced RBS Securities Japan Limited, a subsidiary of Royal Bank of Scotland (RBS), for manipulating the Japanese Yen London Interbank Offered Rate (LIBOR), a leading benchmark used in financial products and transactions around the world. Under the plea agreement, signed in April 2013, RBS…
Abbott Laboratories Pays $5.475 Million to Settle Kickback Claims
Abbott Laboratories, a global pharmaceuticals and health care products company based in Illinois, will pay $5.475 million to settle allegations that it violated the False Claims Act by paying kickbacks in order to induce doctors to implant the company’s products. According to the government, Abbott knowingly paid physicians for conferences and other engagements for the…
DOJ Announces $3.8 Billion Recovered under FCA in FY 2013
According to official DOJ statistics, $3.8 billion was recovered in FCA cases in fiscal year 2013. $2.9 billion of those recoveries stemmed from cases brought by whistleblowers under the FCA’s qui tam provisions. DOJ celebrated several significant settlements achieved in 2013, including a $1.5 billion settlement with Abbott Laboratories for alleged off-label marketing, a $762…
Genzyme Pays $22.28 Million to Settle FCA Allegations of Marketing “Slurry” Versions of its Product
Genzyme Corp., a biotechnology corporation, agreed to pay $22.28 million to 48 states and the federal government to settle allegations that it marketed its surgical adhesion barrier Seprafilm for unapproved uses, causing hospitals using them to submit false claims. Seprafilm is a thin film that prevents healing tissues from adhering to one another after surgery,…
Northrop Pays $11.4 Million to Settle Government Contracts Claim
Northrop Grumman Corp. paid $11.4 million to settle a Federal Acquisition Regulation penalty claim and related FCA allegations that it made improper charges to federal contracts. According to the allegations, Northrop charged to its federal contracts certain costs for deferred compensation awards to key employees, despite a 2002 settlement with the Defense Contract Management Agency…