DOJ Ends 2024 with a Flood of False Claims Act Successes

While many of us are enjoying the slowdown typically accompanying the holiday season, the Department of Justice (DOJ) has been hard at work with a flood of False Claims Act successes to usher in the New Year.  In the last two weeks alone, DOJ has secured roughly a dozen such settlements, returning roughly $165 million to the government's coffers. The False Claims Act is the government’s primary fraud-fighting tool through...

SEC Slaps Becton Dickinson with $175 Million Penalty for Misleading Investors About Alaris Infusion Pump

On December 16, the Securities and Exchange Commission (SEC) announced New Jersey-based medical device maker Becton Dickinson agreed to pay $175 million to settle charges of (i) misleading investors regarding its Alaris infusion pump, and (ii) overstating its income by ignoring the costs of fixing multiple software flaws with the pump.  The pump delivers fluids, medications, and blood to hospital patients and represents roughly 10% of the company's profits. According...

Payments News Update – November 1, 2024

Legal and Regulatory Developments SPOTLIGHT: Chopra Defends CFPB Open Banking Rule in Face of Lawsuit Payments Dive – October 28, 2024 Consumer Financial Protection Bureau Director Rohit Chopra said on Sunday that a lawsuit filed over the agency’s open banking rule finalized earlier this month is an obstacle to increasing competition among financial institutions. Some banks are concerned about competing with smaller players and don’t want to change the status...

The DOJ Goes After Penn State For Cybersecurity Violations

Yesterday (October 22), the Department of Justice (DOJ) announced that The Pennsylvania State University will pay $1.25 million to settle charges it violated the False Claims Act by failing to comply with the cybersecurity requirements under multiple Department of Defense (DoD) and NASA contracts. It is just the latest in a string of False Claims Act cases against universities and other federal contractors failing to protect highly sensitive information. According...

California Law Firm Settle False Claims Act Allegations Regarding Misuse of PPP Loan

It has been a very busy week for the DOJ tackling COVID-19 fraud. On August 15, DOJ announced that The Bloom Firm, a California-based law firm, along with senior management members Lisa Bloom and Braden Pollock, reached a settlement over government allegations of violating the False Claims Act by misusing Paycheck Protection Program (PPP) loan funds. The PPP was established in March 2020 under the CARES Act to offer temporary...

Another Busy Week For DOJ False Claims Act Enforcement

While the lazy days of summer may be upon us, there seems to be no slowing down in the efforts of the Department of Justice (DOJ) to combat fraud with the agency settling several False Claims Act matters covering a wide range of fraud and misconduct. This follows a similar post we wrote only three weeks ago highlighting an equally prolific week of DOJ fraud enforcement activity with multiple civil and...

DOJ CATCH OF THE WEEK — DANIEL HURT

This week's Department of Justice (DOJ) Catch of the Week goes to Florida medical lab owner Daniel Hurt and his companies Fountain Health Services, Verify Health, Landmark Diagnostics, First Choice Laboratory, and Sonoran Desert Pathology Associates.  Last Friday (May 24), DOJ announced their agreement to pay roughly $27 million to settle charges they violated the False Claims Act and Anti-Kickback Statute by billing Medicare for cancer genomic (CGx) tests that...

Busy Week For False Claims Act Enforcement

It was a busy week for Department of Justice (DOJ) fraud enforcement with the agency resolving several False Claims Act matters covering a wide range of fraud and misconduct. The False Claims Act was enacted during the Civil War to go after war profiteers trying to defraud the Union Army with lame mules, empty munitions, and the like. It has since become the government's primary fraud-fighting tool through which the government...

DOJ Catch of the Week: Kabbage Inc.

This week's Department of Justice (DOJ) Catch of the Week goes to bankrupt financial technology company Kabbage Inc. (doing business as KServicing).  On Monday (May 13), DOJ announced that the company agreed to pay up to $120 million to settle charges it violated the False Claims Act by improperly securing Small Business Administration (SBA) loans through the COVID relief Paycheck Protection Program (PPP).  The ultimate payout will depend on the...

Payments News Update – April 12, 2024

Legal and Regulatory Developments SPOTLIGHT: Visa, Mastercard CEOs Throw Hearing Off Track Payments Dive – April 9, 2024 Sen. Dick Durbin opted to postpone a Senate Judiciary hearing this week focused on Visa and Mastercard’s business practices after CEOs of the credit card companies declined to appear Tuesday. But Durbin, who chairs the committee, is still angling to bring those chief executives to Washington, according to his staff. “The witnesses...