A new case the U.S. Supreme Court will hear may set new limits on qui tam lawsuits against drug makers, biotechnology companies and other businesses. The suit concerns a North Carolina water district that was accused of fraudulently seeking federal money for storm cleanup. Although the main allegations had already been made public, a federal…
NJ Hospital Settles a Second Time in Similar Qui Tam Suit
The University of Medicine and Dentistry of New Jersey will pay the United States $2 million to resolve allegations that its hospital defrauded Medicaid. The suit originated in a qui tam complaint filed by Dr. Steven Simring. For nine years the hospital submitted duplicate claims to Medicaid which were also submitted by doctors working in…
Hawaii Hospital Settles Qui Tam Lawsuit for $2.5 Million
The largest private hospital in Hawaii has agreed to pay $2.5 million to settle two lawsuits alleging the Honolulu based hospital overcharged Medicare, the state’s Medicaid program and TRICARE, a health benefits program for military dependents. The settlement has come after five years of negotiation between The Queen’s Medical Center and the government. Two whistleblowers,…
Healthways Pays $40 Million in 15-Year Qui Tam Lawsuit
A 15-year qui tam lawsuit against Healthways, Inc. has been settled for almost $40 million in damages and fees to the U.S. government and the whistleblower. A former marketing representative for Healthways, A. Scott Pogue, filed a qui tam lawsuit under the United States Civil False Claims Act. Mr. Pogue will receive between 25 and…
Defense Contractor Pays $1.7 Million for Alleged Overbilling of U.S. Air Force
A subsidiary of URS Corporation paid $1.8 million to the U.S. government to settle a whistleblower lawsuit alleging the company overbilled the U.S. Air Force for aircraft parts and services. The company, EG&G, a Maryland-based national defense contractor, did not admit wrongdoing in the settlement. The whistleblower was an employee of the company and will…
Minnesota Hospitals Pay $2.28 Million in Whistleblower Suit Settlement
Three HealthEast hospitals will pay the federal government $2.28 million in a whistleblower lawsuit settlement for overcharging Medicare on a type of spinal surgery known as kyphoplasty. The procedure can be performed as outpatient surgery, but was allegedly billed by the hospitals as inpatient from 2002 to 2007, overcharging Medicare and increasing their revenue. The…
False Claims Act Reinforcement Bill Headed to Obama’s Desk for Signing
In an attempt to strengthen the False Claims Act, President Obama will be presented with a bill which will reinforce the law that encourages whistleblowers to file lawsuits on the government’s behalf. The Fraud Enforcement and Recovery Act was approved by both the Senate and the House; Obama is expected to sign the measure. The…
U.S. Joins Whistleblower Suit Against Pharmaceutical Company for Not Paying Medicaid Rebates
Two whistleblower suits against drug manufacturer, Wyeth, have been joined by 16 states and the United States, for allegedly failing to provide the government with the same discounts as it did to private purchasers of its drugs, Protonix Oral and Protonix IV. Under the Medicaid Drug Rebate Program drug manufacturers have to report the prices…
WellCare Pays $80 Million to Avoid Criminal Prosecution
In an effort to punish but not hurt, Florida’s largest Medicaid provider will pay $80 million to the U.S. government to avoid criminal prosecution for health care fraud. WellCare Health Plans Inc. is charged with implementing an elaborate Medicaid fraud scheme which defrauded the Florida Medicaid program and Florida Healthy Kids Corporation out of $40…
Forest Laboratories Income Slides with $170 Million to Go Towards False Claims Investigation
“Forest Laboratories set aside $170 million related to a Justice Department investigation into its marketing and promotion of two antidepressants in the fiscal fourth quarter, when net income slid 46 percent to $92.8 million compared with last year’s fourth quarter.” The case is being led by the U.S. Attorney’s Office for the District of Massachusetts….