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Whistleblower Case

This archive displays posts tagged as involving a whistleblower case or claim. You may also be interested in our pages:

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September 18, 2019

Florida-based compounding pharmacy Diabetic Care Rx LLC, also known as Patient Care America, together with two of its executives, CEO Patrick Smith and VP of Operations Matthew Smith, and the private equity firm Riordan, Lewis & Haden Inc., will pay $21.36 million to resolve a case brought by two whistleblowers under the False Claims Act alleging that they paid unlawful kickbacks to secure referrals for patients covered by TRICARE, the federal healthcare program that covers military members and their families.  The pharmacy paid patient recruiters to target military members and their families for the prescription of compounded creams and vitamins formulated to ensure the highest possible reimbursement from TRICARE.  The marketers in turn paid doctors who issued the prescriptions, often without seeing or even speaking to the purported patients.  In addition, the pharmacy and marketing company often covered patient copayments through a sham charitable organization affiliated with the marketing company.  Private equity investor RLH was alleged to have known about and agreed to the kickback scheme.  Whistleblowers Marisela Medrano and Ada Lopez were, respectively, the former Director of Marketing and the Reimbursement Services Manager of PCA.  They will receive a yet-to-be-determined share of the U.S. recovery.  DOJ; SD FL

September 13, 2019

Medical device manufacturer Avalign Technologies, Inc. and its subsidiary Instrumed International, Inc., will pay $9.5 million to resolve allegations that the companies unlawfully marketed devices not properly approved by the FDA for use in spinal surgeries, circumcisions, and other medical procedures, with knowledge that the devices did not have the required FDA approvals.  The allegations were originally made in False Claims Act action brought by a whistleblower.  USAO SDNY

September 12, 2019

Italian textile company Miroglio Textile S.R.L. and its U.S. affiliate Miroglio Textiles USA, Inc. will pay $650,000 to resolve charges brought in a whistleblower action alleging that the companies fraudulently reduced their obligation to pay customs duties on fabrics, decals, and other products sold by the Italian company to U.S. customers. Without any bona fide business justification, the companies reported the imports as sales from the Italian company to the U.S. affiliate at discounted prices, and used those discounted prices as the basis to calculate duties.  These sales were shams, and Miroglio misrepresented their nature, and the relationship between the entities, in certifications to Customs & Border Protection.  USAO SDNY

September 5, 2019

El Paso Integrated Physicians Group, P.A., several physicians in the group, and Accutrack Medical Claims Services, LLC, have agreed to pay $2.93 million to resolve a False Claims Act case filed by whistleblower Sergio Garcia alleging that they double-billed and over-billed government payors for the infusion drug Remicade (Infiximab).  Remicade is sold in single-use vials; defendants were alleged to have pooled Remicade from partially-used vials, diluted Remicade, and illegally imported drugs from Canada and other foreign countries.  USAO WD Tex

September 4, 2019

Pharmaceutical company Mallinckrodt ARD LLC has agreed to pay $15.4 million to settle allegations of violating the Anti-Kickback Statute by “wining and dining” healthcare providers to induce Medicare prescriptions of its drug H.P. Acthar Gel.  The allegations arose from two whistleblowers, who will jointly receive about $2.9 million of the settlement.  DOJ

Deutsche Bank Pays More than $16M to Settle SEC Charges of FCPA Violations

Posted  08/30/19
Last week, the SEC announced that German-based banking giant Deutsche Bank agreed to pay more than $16 million to settle charges it violated the Foreign Corrupt Practices Act (FCPA) by hiring relatives of foreign officials in China and Russia to get investment banking business.  See SEC Press Release.  According to the SEC’s order, these so-called "referral hires" bypassed the bank's merit-based hiring process and...

August 29, 2019

International SOS Assistance, Inc. and related entities and individuals have agreed to pay $940,000 to resolve claims that they overbilled TRICARE for air medical evacuation services provided to military service members and their families.  International SOS was alleged to have negotiated discounts from third-party air ambulance services, but failed to pass those discounts on to TRICARE.  The case was brought by a whistleblower who used to be a flight desk manager for International SOS; he will receive an award of $165,000.  USAO EDPA

Question of the Week — Is the use of public nuisance law against J&J for its role in the opioid crisis appropriate?

Posted  08/29/19
The landmark $572M opioid verdict in Oklahoma against Johnson & Johnson stemmed from a single claim: “public nuisance” under state law.  Other cases against opioid manufacturers, including whistleblower cases, involve claims for fraud, unlawful marketing, improper prescriptions, kickbacks, violating the Controlled Substances Act by failing to report suspicious purchases, and even flooding the black market.  But...

Is Data the Future of Whistleblowing?

Posted  08/28/19
Two recent decisions, one in California and the other in Texas, might be signaling a new frontier in False Claims Act (FCA) litigation: the data-driven whistleblower. Both cases are brought by the same whistleblower, Integra. Integra is not a typical whistleblower, which are generally corporate insiders or other employees of a company that is accused of defrauding the government. Instead, Integra is a corporation that...

Promising Changes to IRS Whistleblower Program – Tax Whistleblowers Now Protected Against Retaliation and Improved Communication when Reporting Tax Violations

Posted  08/21/19
By Michael Ronickher, Carolina Gonzalez
man with red smoke
Recent legislation marks a potential huge step forward for the IRS Whistleblower Program, which offers rewards of 15 to 30% of government recoveries to whistleblowers who report tax avoidance.  The Taxpayer First Act (TFA), which came into force on July 1, 2019 introduced key reforms that should benefit whistleblowers reporting tax evasion and underreporting. A few months ago, the IRS Whistleblower Office released...
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