The Department of Justice (“DOJ”) announced a settlement with Sterling Healthcare Opco, LLC d/b/a Cordant Health Solutions (“Cordant”) to resolve a civil suit alleging Cordant illegally paid kickbacks to generate urine testing business from government insured consumers. As part of the settlement, Cordant has agreed to pay various government healthcare programs nearly $12 million. According…
Skilled Nursing Facilities to Pay $16.7 Million to Resolve False Claims Act Allegations
The Department of Justice (“DOJ”) announced that 27 skilled nursing facilities owned by Longwood Management Corporation (“Longwood”) have agreed to resolve allegations that Longwood violated the False Claims Act (“FCA”) by submitting false claims to Medicare for rehabilitation therapy services that were neither reasonable nor necessary. Longwood will pay $16.7 million to resolve these claims….
Drug Manufacturer Regeneron Accused of Paying Kickbacks for Co-Pays
The Department of Justice (“DOJ”) announced that it had filed a civil False Claims Act (“FCA”) complaint against drug manufacturer Regeneron Pharmaceuticals, Inc. (“Regeneron”), alleging that Regeneron paid tens of millions of dollars in kickbacks for its macular degeneration drug Eylea. When Medicare beneficiaries obtain prescription drugs under Medicare Part B, they are often required…
SEC Awards Record Payout to Whistleblower
The Securities and Exchange Commission (“SEC”) announced a nearly $50 million whistleblower award to an individual who provided firsthand observations of a company’s misconduct that led to a successful enforcement action and the return of a significant amount of money to harmed investors. According to the SEC, this is the largest amount ever awarded to…
DOJ Files More Charges in Resolve to Combat COVID-19 Relief Fraud
Making good on its pledge to aggressively combat the fraudulent use of COVID-19 stimulus funds, the Department of Justice has charged a third individual for allegedly seeking more than $10M in forgivable loans under the Paycheck Protection Program. Shashank Rai of Beaumont, TX, was charged with wire fraud, bank fraud and making false statements to…
DOJ Announces First Criminal Charges for COVID-19 Stimulus Fraud
The Department of Justice has charged two businessmen in the nation’s first prosecution for fraudulently obtaining COVID-19 stimulus funds. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides for more than half a billion dollars to be loaned to small businesses to keep workers on payroll, known as the Paycheck Protection Program. The two…
Congress Passes $2T CARES Act to Aid COVID-19 Recovery
On March 27, the President signed the Coronavirus Aid, Relief and Economic Security Act (the CARES Act), a $2 trillion package of relief measures designed to boost business and economic activity, provide health care resources to treat COVID-19, and help unemployed workers. In addition to allocating $560 billion to individuals, the CARES Act will provide…
California, Michigan, & Washington DC Propose Legislation to Empower and Reward Tax Whistleblowers
Ten years ago, in an effort spearheaded by Getnick & Getnick’s own Gregory Krakower, New York State amended its “False Claims Act” to allow whistleblowers to file suit, on behalf of New York or any New York local government, against individual or corporate tax cheats with net income or sales of over $1,000,000 a year, and…
Whistleblower Suit Alleging Altered Prescriptions & Illegal Use of Dispensing System Proceeds
U.S. District Judge Cynthia M. Rufe denied Kentucky-based PharMerica’s attempt to dismiss a whistleblower’s allegations that it submitted false claims for government reimbursements for prescriptions. Among other allegations, the whistleblower alleged false requests for payment of both noncontrolled and controlled substances, and for the unlawfully use of a computerized dispensing system to substitute brand-name drugs…
DOJ Considering Requirement that False Claims Act Whistleblowers Disclose Litigation Funding
In a speech Monday to False Claims Act lawyers, Deputy Associate Attorney General Stephen Cox of the Justice Department said that the Department is considering whether to require whistleblowers to tell the Justice Department about any agreements rthat they have with third party litigation funders. Cox stated at the speech that DOJ doesn’t really know the extent to…