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WB Group Successes

Members of the Constantine Cannon Whistleblower Lawyer Team have been responsible for a string of major whistleblower successes over more than a decade.  Please see our Whistleblower Team Successes page.

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Roof Systems of Maine – Government Contracting Fraud/Noncompliance with contract requirements ($439,500).

Two of our whistleblower attorneys led the representation of Brian Emery, an experienced roofer and former subcontractor to Roof Systems of Maine. Mr. Emery brought a qui tam action under the False Claims Act against Roof Systems of Maine alleging the company defrauded the government by violating contract requirements and industry standards in roofing and siding work done on behalf of the Departments of the Army and Navy, and the National Guard Bureau. According to the complaint, Roof Systems systematically used inferior products and improper installation techniques at three building sites along the Maine coast. The government joined the case, and in 2016, Roof Systems paid $439,500 to settle the case. Mr. Emery received a whistleblower award of $79,110. See Morning Sentinel for more.

Education Management Corp. - For-profit college student recruitment violations ($80 million)

Education Management Corporation (EDMC), a Pittsburgh-based operator of for-profit educational institutions, agreed to pay more than $80 million to settle a False Claims Act lawsuit brought by a whistleblower represented by attorneys at Constantine Cannon.   The settlement was the largest settlement to date in an FCA suit involving the U.S. Department of Education.  The whistleblowers, Lynntoya Washington and Michael T. Mahoney, provided extensive evidence that EDMC had for years paid its recruiters incentive compensation based upon how many students they enrolled, regardless of whether the students were suitable candidates, while steadily concealing its illegal practices with repeated false statements to state and federal authorities. Read more here and from the DOJ.

Office Depot — Government Contracting Fraud/Best Pricing ($68.5 million).

One of our whistleblower attorneys led the representation of David Sherwin, a former business manager at Office Depot. Mr. Sherwin brought a qui tam action under the False Claims Act against Office Depot alleging the company overcharged over one thousand California public agencies, including schools, for office supplies. According to the complaint, Office Depot promised its public agency customers Office Depot’s “best” pricing when in fact it charged them millions of dollars more than they would have paid under other, more favorable Office Depot contracts. In addition to representing Mr. Sherwin, one of our attorneys also represented numerous public agencies that joined the case. Office Depot ultimately settled the case for $68.5 million, and Mr. Sherwin’s estate received a whistleblower award of $23 million. See LA Daily News for more.

DaVita — Medicare Fraud/Kickbacks ($400 million).

Two of our whistleblower attorneys led the representation of David Barbetta, a former financial analyst for DaVita HealthCare Partners, one of the largest providers of dialysis services in the United States. Mr. Barbetta brought a qui tam action under the False Claims Act against DaVita alleging the company violated the Anti-Kickback Statute by paying physicians to refer their patients to DaVita clinics for dialysis. According to the complaint, DaVita sold doctors shares of DaVita clinics at below fair market value, and purchased doctors’ interests in other clinics at above fair market value. The government joined the case, and alleged that DaVita had entered into these sweetheart deals with doctors, which gave the doctors returns of over 100%, and the doctors then steered their patients to DaVita clinics. In 2014, DaVita paid $400 million to settle the case, the largest stand-alone kickback settlement to date. See Denver Post and Modern Healthcare for more.

Rose Cancer Center — Medicare Fraud ($5.7 million).

Two of our whistleblower attorneys co-led the representation of Kristi Beeson who reported Medicare fraud violations at her former employer Rose Cancer Center in Mississippi. Ms. Beeson, who was a laboratory technician for the clinic, brought a qui tam action under the False Claims Act against the clinic alleging, among other things, unqualified technicians performing bone marrow biopsies, diluting chemotherapy drugs, and doctoring patient records to conceal the clinic’s fraudulent Medicare billings. The physician who owned and ran the practice, Dr. Meera Sachdeva, plead guilty to various Medicare fraud violations, forfeited $5.7 million, and is now serving a 20 year prison sentence for her crimes. Ms. Beeson, along with three other whistleblowers, collectively received a whistleblower award of $525,000 for their efforts in exposing the fraud. See Clarion Ledger for more.

Ocean Carriers — Government Contracting Fraud/Prohibited Charges.

Two of our whistleblower attorneys led the representation of a whistleblower who brought a qui tam action under the False Claims Act against two ocean carriers alleging they included in their government invoices charges specifically disallowed under the government contract. The ocean carriers did not have direct contracts with the government and submitted their invoices to parties who in turn presented them to the Department of Defense. Although the government declined to intervene because of uncertainties created by the lack of direct interaction between the defendants and the United States, our whistleblower lawyers pressed ahead, defeating multiple motions to dismiss and aggressively moving forward with discovery. The action settled with both defendants, and the whistleblower was awarded 28% of the government’s recovery. See Pacific Business News and Ship and Bunker News for more.

JM Eagle — Government Contracting Fraud/Noncompliance with Industry Standards ($22.5 million).

Two of our whistleblower attorneys led the representation of whistleblower John Hendrix, a former engineer at JM Eagle, as well as dozens of public agencies, in a two-month jury trial in Los Angeles against JM Eagle, the largest PVC pipe maker in the world. The jury returned a 50-page verdict finding that, over a ten-year period, JM Eagle had falsely represented its compliance with industry standards related to long term strength and durability of its PVC pipe. The pipe is buried deep underground in hundreds of municipalities around the nation. The damages phase of the case has not yet been held. However, a co-defendant in the case, Formosa Plastics, paid $22.5 million to settle its own potential liability, and Mr. Hendrix received a whistleblower reward from that settlement. See NY Times and Corporate Crime Reporter for more.

ATK — Government Contracting Fraud/Defective Product ($37 million).

One of our whistleblower attorneys led the representation of Kendall Dye, an engineer with what was formerly ATK Thiokol and is now ATK Launch Systems, who brought a qui tam action under the False Claims Act against ATK for selling defective flares to the United States military. According to the complaint, company testing revealed the flares could accidentally ignite if dropped from a height of as little as 11 inches. The flares burn at thousands of degrees, and are capable of burning through the hull of a ship, creating a significant safety risk. The government joined Mr. Dye’s case, and ATK ultimately settled for $37 million, with Mr. Dye receiving a whistleblower reward of $9 million. See NY Times for more.

Northrop Grumman — Government Contracting Fraud/Failure to Test ($12.5 million).

One of our whistleblower attorneys led the representation of Allen Davis, a former quality assurance manager at Northrop’s Navigation Systems Division facility in Salt Lake City, who brought a qui tam action under the False Claims Act, alleging the defense contractor failed to test properly certain commercial parts it supplied for navigation systems in warplanes, submarines and space equipment. Northrop ultimately settled the case for $12.5 million with Mr. Davis receiving a portion of that amount as a whistleblower award. See Reuters for more.

Tyco — Government Contracting Fraud/Noncompliance with Industry Standards ($60 million).

One of our whistleblower attorneys led the representation of Nora Armenta and dozens of California municipalities in a qui tam action under the False Claims Act against Tyco International, Mueller Co., and the James Jones Company, alleging they sold waterworks parts to municipal water systems that were made with 40% more lead than allowed by industry standards. According to her complaint, Ms. Armenta repeatedly warned her superiors that the parts were for drinking water, but was ignored. The defendants settled the case, but only after 13 years of litigation, including three successful appeals that reversed unfavorable trial rulings. The defrauded municipalities received $60 million, and Ms. Armenta received a whistleblower reward of $15 million.

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