Brookhaven Memorial Hospital Center is paying $2.92 million, plus interest, to settle allegations that the hospital defrauded Medicare. The hospital allegedly inflated its charges to obtain supplemental outlier payments from the federal health care program. Medicare reserves outlier payments for cases where there is an unusually high cost of care to provide hospitals with an…
Mariner Health Care Inc. and SavaSeniorCare Pay $14 Million in False Claims Act Settlement
Atlanta-based Mariner Heath Care Inc. and SavaSeniorCare Administrative Services LLC, along with their principals, Leonard Grunstein, Murray Forman and Rubin Schron, will pay the United States and several states $14 million to settle allegations that the defendants solicited $50 million in kickback payments from Omnicare, the largest pharmacy in the nation which specializes in dispensing…
Weaver of Ballistic Fabrics Will Pay $4 Million for Sale of Defective Material
A $4 million settlement has been reached between the U.S. Government and Lincoln Fabrics Ltd. in a False Claims Act lawsuit stemming from the company’s production of a defective material used in bullet-proof vests. When the vests were exposed to heat and humidity, the material, called Zylon, apparently lost its ballistic capability. Allegedly, Lincoln was…
$18.5 Million Settlement for Illegal Off-Label Marketing of Anti-Psychotic Drug
Eli Lilly & Co. has agreed to pay $18.5 million to the State of Arkansas to settle a lawsuit alleging that the company engaged in “illegal and fraudulent off-label marketing of Zyprexa,” an anti-psychotic drug. The company allegedly promoted the drug for a variety of unapproved uses, including treatment of dementia, aggression, depression and sleep…
Teva Announces $315 Million False Claims Settlement
Several subsidiaries of Teva Pharmaceuticals Ltd. have agreed to settle lawsuits brought against them under the Federal False Claims Act and corresponding state statutes in Texas, Florida, and California. The lawsuits were brought by a qui tam plaintiff, Ven-A-Care, a pharmacy located in Key West, FL. The lawsuits allege that Teva, along with other pharmaceutical…
U.S. Will Collect $10 Million from Former Los Angeles Medical Center Owners for False Claims Scheme
The United States will receive $10 million from a Los Angeles businessman and a physician for a Medicare and Medi-Cal fraud scheme. The consent judgment will resolve a civil lawsuit filed against the two individuals who formerly owned the Los Angeles City of Angels Medical Center. The scheme involved paying ‘recruiters,’ who were employed at…
Qui Tam Lawsuit Ends in $3.76 Million Resolution for Alleged Medicare Fraud
Medical device manufacturer, Atricure Inc., will pay the United States $3.76 million to resolve claims of Medicare fraud and violations of the Food, Drug and Cosmetic Act. Allegations included promoting its medical devices for uses which are not approved by the U.S. Food and Drug Administration. The West Chester, Ohio-based company was also accused of…
New NJ Legislation Strengthens False Claims Ac
The New Jersey legislature has passed a bill amending the state’s False Claims Act, aligning it with the Deficit Reduction Act. This will strengthen the recovery efforts for Medicaid fraud cases.
U.S. Files Suit Against J&J for Paying Kickbacks Based on Whistleblower Suits
Drug manufacturer Johnson & Johnson, of New Brunswick, N.J., and two of its subsidiaries are the targets of a complaint filed by the U.S. government under the False Claims Act. The government alleges that J&J paid millions of dollars in kickbacks to Omnicare Inc., to increase the purchase and recommendation of J&J drugs to nursing…
FORBA Pays U.S. $24 Million in Settlement based on Three Qui Tam Lawsuits
The United States and FORBA Holdings LLC agreed on a $24 million settlement to resolve allegations that FORBA caused reimbursement claims for unnecessary dental procedures performed on low-income children to be submitted to Medicaid. FORBA, a dental management company which provides management and business services to clinics nationwide known as “Small Smiles Centers,” will pay…