A Virginia based disaster relief company and its partners will pay the U.S. government $4 million to settle a False Claims complaint alleging the company accepted payment for work which was not completely performed based on a contract with the Department of Homeland Security. The company, Lighthouse Disaster Relief and its partners Gary Heldreth and…
Alta Colleges Pay U.S. $7 Million for False Claims; Initial Suit by Unnamed Whisltblowers
Alta Colleges Inc., the parent company of Westwood College in Fort Worth, Texas, will pay the U.S. government $7 million for allegedly submitting false claims for federal student aid funds. Alta’s Texas colleges were accused of misrepresenting compliance with professional licensing and state job-placement reporting requirements. The federal suit was initially filed by unnamed whistleblowers…
Businessman Blows the Whistle on Quest Diagnostic – Ends in $302 Million Settlement
In the largest qui tam settlement paid by a medical lab company, Quest Diagnostics settled for $302 million with the U.S. government for allegedly distributing medical kits despite complaints of inaccurate test results. The faulty tests put hundreds of thousands of dialysis patient’s health at risk. In some cases the tests resulted in patients receiving…
Government Wins $128 Million in Qui Tam Suit Against NetApp
The whistle has been blown on a General Services Administration (GSA) contractor who will now pay the U.S. government $128 million for allegedly failing to offer, “its best commercial pricing on information technology goods and services.” A lawsuit was filed by former Network Appliance (NetApp, Inc.) employee, Igor Kapuscinski, who’s complaint led to the investigation….
Largest Qui Tam Settlement Paid for Defective Satellite Components
The largest settlement ever paid by a defense contractor took place April 2, in which TRW Inc., now owned by Northrop Grumman, paid the U.S. government $325 million in a qui tam lawsuit. The lawsuit alleged that TRW sold components known as “heterojunction bipolar transistors, “ used in intelligence-gathering satellites, which had known defects and…
$40 Million Qui Tam Settlement Between Healthways and U.S. Government
Healthways has agreed to a $40 million settlement with the U.S. Government resulting from a qui tam lawsuit brought by a former employee. The company was accused of paying doctors to refer patients to its Diabetes Treatment Centers. The settlement is, “not an admission of wrongdoing”, according to CEO Ben Leedle. Healthways concluded that, “the…
New Whistleblower Lawsuit Against Amgen, Inc.
A whistleblower has filed a lawsuit against the biotechnology company Amgen, Inc. for allegedly marketing the drugs Enbrel and Aranesp for illegal off-label use. The drugs are approved to treat rheumatoid arthritis and anemia respectively. Although physicians are allowed to prescribe medications for off-label use, it is illegal for drug manufacturers to market drugs for…
Drug Company Targeted for Illegal Marketing of Celexa and Lexapro
A complaint against a New York pharmaceutical company was unsealed last Wednesday for allegedly marketing the drugs Celexa and Lexapro for unapproved pediatric use and for paying doctors to prescribe the drug through illegal kickbacks. Forest Laboratories Inc. is charged with influencing doctors with cash payments disguised as grants. The company was prohibited from promoting…
Whistle is Blown on Drug Companies Scios and Johnson & Johnson for Medicare Fraud
The U.S. Justice Department announced it will join two whistleblower lawsuits against drug makers Scios and Johnson & Johnson Inc. The companies allegedly marketed drugs for use not approved by the FDA and collected hundreds of millions of dollars in reimbursements through Medicare.
GlaxoSmithKline Takes $400 million charge for off-label promotion of Wellbutrin
GlaxoSmithKline (GSK) is taking a $400 million charge due to an investigation into drugs it manufactures that were allegedly being promoted for off-label use. One of the drugs, Wellbutrin SR, an antidepressant, was being promoted to treat bipolar disorders, which is not FDA approved. The Colorado U.S. Attorny will continue to investigate this drug, as…