The United States will receive $1 million from bullet-proof vest manufacturers Barrday Inc. and two other companies to settle allegations in connection with them knowingly selling defective merchandise. The government alleges the companies knew the vests lost their ballistic capability quickly when exposed to heat and humidity, yet continued to sell them anyway. The U.S…
Defense Contractor Pays $4 Million in Overbilled Service Hours
A U.S. defense contractor will pay the government $4 million to settle claims that it over billed for hours worked on maintaining helicopters in Iraq. The qui tam lawsuit was filed on behalf of a former employee who will receive a portion of the settlement, according to provisions of the False Claims Act. The company,…
Hospice Provider Pays U.S. $24.7 Million for Alleged Reimbursement Fraud
SouthernCare Inc. has agreed to pay the U.S. $24.7 million to settle allegations that the hospice facility submitted false claims to the government, attempting to gain reimbursement for care it had given. Hospice care is designated to be provided for those who have a terminal illness with a prognosis of six months or less to…
ACLU Challenges Whistleblower Law
The American Civil Liberties Union is challenging the constitutionality of a law that requires whistleblowers to file their lawsuits in secret when alleging war profiteering or other contract fraud. The ACLU say the requirement violates the freedom-of-speech protections and are keeping war fraud complaints hidden from public scrutiny. The lawsuit alleges the Justice Department has…
Pharma, Eli Lilly, Pleads Guilty to Qui Tam Lawsuit, Agrees to Pay $1.415 Billion
Pharmaceutical giant, Eli Lilly and Company, plead guilty to promoting its drug Zyprexa for “off-label” uses. The plea resulted in the company paying $515 million in criminal fines. This is the largest payment made from an individual corporate criminal fine in history. In addition to the large payout, Eli Lilly signed a civil settlement admitting…
DOJ Settles $15.5 Million Qui Tam Lawsuit with Advertising Agency
A Chicago advertising firm agreed to pay the U.S. $15.5 million to settle a qui tam lawsuit alleging the company “improperly” billed the government for work on the “Army of One” Web site and recruitment advertising. The Leo Burnett Company will make a cash payment and resolve the remaining balance in work performed but not…
Massachusetts Takes on 13 Pharma Companies in Alledged False Claims Suits
Massachusetts is taking a stand against pharmaceutical companies inflating prescription prices. Thirteen drug manufacturers are being sued by the state under allegations of falsely inflating prices they reported to national pharmaceutical price-reporting services. Teva Pharmaceuticals, one of the thirteen, has paid $7 million to settle the False Claims Act case brought against them. The company…
7 NY Hospitals Accused of Operating $50 million Medicaid Scam
Seven New York hospitals are accused of operating a $50 million Medicaid scam by making false claims for ‘patients’ going through drug-treatment programs. Some of the patients were not actual addicts and the hospitals are being accused of luring street people in with cigarettes and beer. One of the hospitals, Our Lady of Mercy entered…