Oracle Corp. and Oracle America Inc. (“Oracle”) agreed to pay $199.5 million to settle False Claims Act allegations against it. According to the complaint, Oracle violated a 1998 contract which granted Oracle a contract to provide software licenses and technical support to multiple government entities through the General Services Administration (“GSA”). Under the contract, Oracle…
NYS Taxpayer Protection Bureau Recovers $1.6 Million for Schools
Whitsons Culinary Group, a food services provider who supplied school lunches for multiple districts throughout New York State, settled False Claims Act allegations with the New York Attorney General’s office. According to the Attorney General, Whitsons overcharged the state of New York by failing to pass along rebates that it received from its food vendors…
Banks Defraud Veterans by Hiding Home Loan Fees
A False Claims Act case alleging that multiple banks concealed unlawful fees in loans to veterans was unsealed Monday. Under a Department of Veteran’s Affairs (“VA”) loan guarantee program, veterans are eligible for refinanced home loans which allow them to lower their interest rates or shorten the terms of their existing mortgages. VA rules limit…
Select Specialty Hospitals to Pay $7.5 Million; All Hospitals to Face Strict Monitoring
Select Specialty Hospitals has agreed to pay $7.5 million to resolve allegations that it violated the False Claims Act. Although the lawsuit involved only three of Select’s long-term, acute-care hospitals in the Columbus, Ohio area, all 110 of Select’s hospitals nationwide will submit to strict reporting and monitoring requirements under the Corporate Integrity Agreement. The…
LHC Group to Pay $65 Million
LHC Group Inc. agreed to pay $65 million to settle False Claims Act allegations against it. According to the complaint, LHC allegedly billed federal healthcare programs for medically unnecessary services, including home health visits for patients who were not home-bound. The suit was initiated by a whistleblower, Judy Master, who worked for a consulting firm…
Amgen Brings Kickback Case to the Supreme Court
Amgen has filed a cert. petition with the U.S. Supreme Court, asking it to review a First Circuit decision that held that Amgen could be held liable for claims involving kickbacks–money, discounts, and incentives that Amgen paid to doctors–allegedly submitted by unknowing hospitals. Amgen argues in its petition that the claims should have been paid,…
Iowa Estimates AWP Damage for State: $1.6 Billion
In a recent report, Iowa aggregated the estimated amount of money it had been defrauded of as a result of average wholesale price fraud over the last thirteen years. That total came to a whopping $1.6 billion. Several pharmaceutical companies allegedly participated in fraudulent practices that manipulated the average wholesale price (AWP) that was used…
Par Case Reveals Walgreens’ Efforts to Sell Customers on Higher Prices
According to new documents filed in the Par Pharmaceuticals case, after illegally switching prescriptions for generic Zantac from tablets to pricier gel caps Walgreens allegedly sent out one-liners to pharmacists, suggesting that they tell concerned patients that the new pills were being adopted because they were easier to swallow. Emails and PowerPoints revealing this information…
Hill-Rom to Pay $41.8 Million
Hill-Rom Company, Inc., agreed to pay $41.8 million to resolve allegations that it violated the False Claims Act. According to the allegations, Hill-Rom knowingly submitted false claims for the specialized medical equipment it supplied, including claims for patients who had died or who no longer used the equipment. Hill-Rom has also entered into a five…
Kentucky Doctor to Pay Nearly $350,000
A Kentucky doctor and his practice, Kentuckiana Center for Better Bone and Joint Health PLLC, agreed to pay $349,860 to resolve allegations of over-billing Medicare. According to the DOJ, Dr. Stern routinely split one vial of Infliximab between several patients, but subsequently charged Medicare for one full vial for each patient. The case was initiated…