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Multiple Whistleblowers and First-to-File

This archive displays posts tagged as relevant to multiple whistleblowers and first-to-file issues in whistleblower litigation. You may also be interested in our pages:

Page 4 of 4

June 25, 2014

Omnicare Inc., the nation’s largest provider of pharmaceuticals and pharmacy services to nursing homes, agreed to pay $124M to resolve charges it violated the Anti-Kickback Statute and the False Claims Act by providing improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to elderly Medicare and Medicaid patients. The government’s action against Omnicare originated with two lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act. The first whistleblower, former Omnicare employee Donald Gale, will receive roughly $17M out of the government’s recovery. Whistleblower Insider

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.

Ninth Circuit Victory For Whistleblowers In Narrowing "Public Disclosure" And "First-To-File" Bars To Bringing Qui Tam Actions

Posted  07/10/15
By Gordon Schnell
In a major victory for whistleblowers, the Ninth Circuit in United States ex rel. Hartpence v. Kinetic Concepts, Inc. narrowed the reach of two significant bars to bringing qui tam lawsuits under the False Claims Act.  Under the so-called "public disclosure" bar, the Ninth Circuit reversed its own precedent and ruled the "original source" exception to the bar does not require the whistleblower to have played a role...

DC Circuit Limits Reach Of False Claims Act First-To-File Bar

Posted  07/2/15
By the C|C Whistleblower Lawyer Team And yet another appellate court decision reining in the reach of the first-to-file bar for whistleblowers under the False Claims Act.  This one decided by the DC Circuit in United States ex rel. Heath v. AT&T.  Before the Court was the question of whether a whistleblower action against AT&T for allegedly engaging in a nationwide scheme of overcharging the government was barred...

Supreme Court in Carter Decision Narrows Scope of Whistleblower First-To-File Bar

Posted  05/28/15
By the C|C Whistleblower Lawyer Team Under the False Claims Act's so-called first-to-file rule, a whistleblower may not bring a qui tam action "based on the facts underlying [a] pending action."  There has always been some uncertainty as to how far this whistleblower bar extends -- whether it applies only when the related claims of the "pending" action remain live, or whether it blocks those claims in...

First Circuit Weighs In On Scope Of False Claims Act "First-To-File" Bar

Posted  12/11/14
By Gordon Schnell Under the so-called "first-to-file" rule, a whistleblower is precluded from bringing a False Claims Act case if one based on the same underlying facts is already pending. This pressure to be first to the courthouse forces whistleblowers to make a tradeoff between the speed and quality of their False Claims Act filing. In United States ex rel. Sun v. Baxter Healthcare Corp., the First Circuit...

DC Circuit Creates Split on Scope of First-to-File Rule Under False Claims Act

Posted  04/24/14
By the C|C Whistleblower Lawyer Team Under the so-called first-to-file rule, “[w]hen a person brings an action under the False Claims Act, no person other than the Government may intervene or bring a related action based on the facts underlying the pending action.” 31 U.S.C. § 3730(b)(5). The rule serves two primary purposes. It encourages whistleblowers with allegations of fraud to come forward as quickly as...

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