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DOJ Catch of The Week -- Foundations Health Solutions

Posted  07/21/17
By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to Foundations Health Solutions Inc., Olympia Therapy Inc. and Tridia Hospice Care Inc.  On Monday, these Ohio-based companies, comprising one of the largest nursing home operations in the state, and their executives Brian Colleran and Daniel Parker, agreed to pay roughly $19.5 million to resolve allegations that they...

Ninth Circuit Finds Materiality in the Face of Continued Government Payment

Posted  07/14/17
By Rosie Dawn Griffin Earlier this month, the U.S. Court of Appeals for the Ninth Circuit revived United States ex rel. Campie v. Gilead Scis., a False Claims Act (FCA) suit against pharmaceutical giant Gilead Sciences and, in doing so, provided the qui tam bar with additional guidance on how the lower courts will interpret the Supreme Court’s emphasis on materiality in Universal Health Services, Inc. v....

Allergan to Pay $13M to Resolve Whistleblower-Initiated Suit

Posted  07/5/17
By the C|C Whistleblower Lawyer Team Pharmaceutical maker Allergan, Inc. has agreed to pay $13 million to settle claims it illegally promoted eye drugs through a kickback scheme to induce doctors to prescribe its products. According to the complaint, Allergan improperly provided services such as business consulting and continuing medical education to boost its sales by encouraging doctors to recommend...

Los Angeles Hospital Settles FCA suit for $42M

Posted  06/29/17
By the C|C Whistleblower Lawyer Team Pacific Alliance Medical Center, a hospital in Los Angeles’ Chinatown neighborhood, settled allegations that its financial relationships violated the Stark Law and Anti-Kickback Statute. Of the $42 million settlement, $32 million is allocated to the United States, while the remaining $10 million is allocated to the State of California. According to the allegations, the...

Electronic Health Records Vendor Pays Big to Settle False Claims Act Charges

Posted  06/1/17
By the C|C Whistleblower Lawyer Team Massachusetts-based eClinicalWorks, one of the country's largest vendors of electronic health records software, agreed to pay $155 million to settle charges it violated the False Claims Act by misrepresenting the capabilities of its software and by paying kickbacks to certain customers in exchange for promoting the company's product. It is the largest False Claims Act settlement...

Eighth Circuit Rules That Public Disclosure Bar Applies in Drug Price Inflation Suit

Posted  05/31/17
Early this month, the U.S. Court of Appeals for the Eighth Circuit declined to revive a whistleblower’s False Claims Act (FCA) suit, ruling that prior litigation and government reports triggered the statutory public disclosure bar, even though the public disclosures at issue did not mention the defendants in the case. The case, United States ex rel. Lager v. CSL Behring. LLC, concerned fraud in the prescription drug...

Freedom Health, Optimum Healthcare and Its Former COO to Pay $32.5 Million to Settle False Claims Act Allegations of Medicare Fraud

Posted  05/31/17
By the C|C Whistleblower Lawyer Team Yesterday, the Department of Justice and Constantine Cannon, LLP announced that they had reached a settlement with Freedom Health and Optimum Healthcare, two large health insurers and operators of Medicare managed healthcare insurance plans controlled by Dr. Kiranbhai “Kiran” C. Patel and based in Tampa, Florida, to resolve allegations of systemic Medicare and Medicaid...

DOJ Catch of the Week -- Mercy Hospital

Posted  05/19/17
By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to two Southwest Missouri hospitals who yesterday agreed to pay $34 million to settle charges they violated the False Claims Act by engaging in improper financial relationships with referring physicians.  The two hospitals are Mercy Hospital Springfield and its affiliate Mercy Clinic Springfield Communities (formerly...

United States Files Complaint-in-Intervention in Constantine Cannon Whistleblower’s Case Against UnitedHealth Group

Posted  05/17/17
The Department of Justice announced yesterday that it has filed a complaint-in-intervention against UnitedHealth Group (UHG) in a case brought by Constantine Cannon client Ben Poehling.  The government’s complaint alleges that UHG knowingly obtained inflated risk adjustment payments from Medicare Advantage based upon false information regarding the health of beneficiaries in its plans. UHG is the nation’s...

DOJ Catch of the Week -- Import Merchandising Concepts

Posted  05/5/17
By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to Import Merchandising Concepts L.P.  On Monday, the Texas-based importer (and two affiliated individuals) agreed to pay $275,000 to settle charges of violating the False Claims Act by evading customs duties on imports of wooden bedroom furniture from China.  The company imports, among other things, bedroom furniture...
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