FCA Federal

January 22, 2019

Walgreens Co. will pay the U.S. and the State of Wisconsin $3.5 million to settle a case under the False Claims Act alleging that the retail pharmacy routinely dispensed stimulant medications to Wisconsin Medicaid beneficiaries without first verifying that the prescribing physician ordered the medication for medically appropriate treatment, such as treatment for attention deficit disorder. The case was initiated by unidentified whistleblowers, who will receive a share of the settlement to be determined. USAO EDWI

January 22, 2019

Walgreens Boots Alliance, Inc. will pay $209.2 million to settle a False Claims Act case brought by two whistleblowers alleging that the retail pharmacy chain knowingly dispensed insulin pens to patients who did not need them, and billed Medicare, Medicaid, and other government insurance programs for those unnecessary items.  As part of the settlement, Walgreens admitted that it prevented pharmacists from dispensing fewer than five insulin pens at a time and altered records regarding dispensing information and days-of-supply so that patients received more insulin pens than they actually needed.  $168 million of the settlement will be paid to the U.S., and approximately $41.2 million to state governments. The whistleblowers, Adam Rahimi and S. Christopher Schulte, will receive a share of the total settlement, to be determined at a later date.  USAO SDNY.  See also, NY, OH

Sharp HealthCare - Healthcare Fraud/Kickbacks (Undisclosed)

Constantine Cannon represented a whistleblower in a False Claims Act case alleging Sharp HealthCare Center for Research, Sharp’s clinical-trial research arm, paid kickbacks to entice prospective trial sponsors to host clinical trials at Sharp.  In November 2019, the company agreed to pay an undisclosed amount to settle the matter.  Our client received a whistleblower award of an undisclosed portion of the government's recovery.  Read more -- CC.

December 21, 2018

Mortgage servicing company Compu-Link Corporation, also known as Celink, will pay $4.25 million to settle a False Claims Act case alleging that it improperly obtained FHA insurance payments on reverse mortgages under the Home Equity Conversion Mortgages program despite knowing that the mortgagees in question were not eligible to receive the FHA payments.  USAO MD Fla