Whistleblower News from the Inside - December 2, 2014

By the C|C Whistleblower Lawyer Team

Car seat maker under investigation for delayed reporting of defect — Federal safety regulators open investigation into whether Graco Children’s Products delayed reporting a safety defect that eventually led to the nation’s largest recall of children’s car seats.  NYT

Maricopa County Community College District settles whistleblower suit — The operator of community colleges agreed to pay $4M to resolve allegations it submitted false claims to the Corporation for National and Community Service (CNCS) concerning AmeriCorps state and national grants.  DOJ

First Circuit dismisses Baxter whistleblower suit — The appellate court ruled that a pair of whistleblowers can’t reopen a $30M False Claims Act lawsuit alleging pharmaceutical companies reported inflated average wholesale prices of drugs to Medicaid and Medicare, saying a Massachusetts federal judge was right to toss the case under the first-to-file rule.  Law360

Charlotte opens retaliation investigation into Fire Department whistleblower  — The City Manager said he would hire an “independent third party” to investigate an allegation that the city retaliated against an employee for complaining about what she believed to be unhealthy conditions in a new building to house the arson task force.  Observer

US joins whistleblower suit against Air Ideal — The government claims the Florida-based company and its owner, Kim Amkraut, made false statements to the Small Business Administration to improperly obtain certification as a Historically Underutilized Business Zone.  DOJ

North Atlantic Medical Services settles whistleblower suit — The medical device company agreed to pay more than $850,000 to resolve allegations it violated the False Claims Act by submitting claims to Medicare and Medicaid for respiratory therapy services provided by unlicensed personnel.  DOJ