Whistleblower Case
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June 30, 2017
Charlotte-Mecklenburg Hospital Authority (dba Carolinas Healthcare System) agreed to pay $6.5 million to resolve charges it violated the False Claims Act by “upcoding” claims for urine drug tests in order to receive higher payment than allowed for the tests. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Mark McGuire, a former laboratory director for CHS. He will receive a whistleblower award of roughly $1.4 million from the proceeds of the government's recovery. DOJ (WDNC)June 29, 2017
Innovative Therapies, Inc. and its parent company Cardinal Health, Inc. agreed to pay roughly $2.7 million to settle charges they violated the False Claims Act by submitting false claims to Medicare through their marketing of certain negative pressure wound treatment devices as durable medical equipment when they knew these devices did not have the expected life of a durable device. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a former ITI employee. The whistleblower will receive an award of $488,700 from the proceeds of the government's recovery. DOJ (MDTN)June 28, 2017
PAMC Ltd. and Pacific Alliance Medical Center Inc., which together own and operate Pacific Alliance Medical Center, an acute care hospital located in Los Angeles, agreed to pay $42 million to settle charges they violated the False Claims Act and the Stark Law by engaging in improper financial relationships with referring physicians. These relationships took the form of (1) arrangements under which the defendants allegedly paid above-market rates to rent office space in physicians’ offices, and (2) marketing arrangements that allegedly provided undue benefit to physicians’ practices. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Paul Chan, who was employed as a manager by one of the defendants. He will receive a whistleblower award of more than $9.2 million from the proceeds of the government's recovery. DOJJune 26, 2017
AMI Monitoring Inc. (aka Spectocor), its owner Joseph Bogdan, Medi-Lynx Cardiac Monitoring LLC, and Medicalgorithmics SA, the current majority owner of Medi-Lynx, agreed to pay roughly $13.5 million to resolve allegations they violated the False Claims Act by billing Medicare for higher and more expensive levels of cardiac monitoring services than requested by the ordering physicians. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former Spectocor sales manager Eben Steele. He will receive a whistleblower award of roughly $2.4 million from the proceeds of the government's recovery. DOJJuly 27, 2017
The Securities and Exchange Commission today announced a whistleblower award of more than $1.7 million to a company insider who provided the agency with critical information to help stop a fraud that would have otherwise been difficult to detect. Millions of dollars were returned to harmed investors as a result of the SEC’s ensuing investigation and enforcement action. ''When whistleblowers tip the SEC, it not only can bring wrongdoers to justice but also relief to investors,'' said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. ''This whistleblower's valuable information enabled us to stop further investor harm and ultimately return money to victims.'' Approximately $158 million has now been awarded to 46 whistleblowers who voluntarily provided the SEC with original and useful information that led to a successful enforcement action. SECJuly 27, 2017
The SEC made a whistleblower award of more than $1.7 million to an undisclosed company insider who provided the agency with critical information to help stop a fraud that would have otherwise been difficult to detect. The SEC reports that roughly $158 million has now been awarded to 46 whistleblowers who voluntarily provided the SEC with original and useful information that led to a successful enforcement action. SECCelgene to Pay $280M to Resolve Fraud Allegations
Posted 07/26/17
By the C|C Whistleblower Lawyer Team
Pharmaceutical manufacturer Celgene Corp. agreed to pay $280 million to settle claims that it illegally promoted two cancer drugs, Thalomid and Revlimid, for unapproved uses. The case was filed by a former Celgene sales representative under the False Claims Act, which allows individuals to sue to recover government dollars and share in any recovery.
The New York Times reports...