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Whistleblower Eligibility

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Mylan Agrees to Pay $465 Million in a False Claims Act Settlement

Posted  08/21/17
By the C|C Whistleblower Lawyer Team Last Friday, the Department of Justice (“DOJ”) announced a $465 million settlement with Mylan, Inc. to resolve claims that it violated the False Claim Act. The suit was brought by a whistleblower under the False Claims Act qui tam provisions and involved the alleged improper misclassification of the EpiPen as a generic drug to avoid paying rebates owed mainly to Medicaid....

DOJ Catch of the Week -- Mylan

Posted  08/18/17
By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to Mylan Inc. and Mylan Specialty L.P. Yesterday, the pharmaceutical companies agreed to pay $465 million to settle charges they violated the False Claims Act by purposely misclassifying EpiPen as a generic drug to avoid paying higher Medicaid rebates. In announcing the settlement, the government stressed its "unwavering...

Government Employees are Now Clearly Eligible for SEC Whistleblower Awards

Posted  08/3/17
By the C|C Whistleblower Lawyer Team A $2.5M award announced last week included a footnote delineating who, among government employees, is eligible for SEC whistleblower awards. Employees of local, state, and federal agencies, other than regulatory, or law enforcement agencies, are eligible for awards. Which agency this whistleblower worked for was not revealed. Notable excluded regulatory agencies include the SEC...

July 25, 2017

The Securities and Exchange Commission today announced an award of nearly $2.5 million to an employee of a domestic government agency whose whistleblower tip helped launch an SEC investigation and whose continued assistance enabled the SEC to address a company's misconduct. ''Whistleblowers can provide a wealth of information and ongoing assistance that helps our agency bring enforcement actions quicker and more efficiently,'' said Jane Norberg, Chief of the SEC's Office of the Whistleblower.  ''This whistleblower not only helped us open the case, but also provided timely ongoing assistance along with critical documents and testimony that accelerated the pace of our enforcement action.'' Approximately $156 million has now been awarded to 45 whistleblowers who voluntarily provided the SEC with original and useful information that led to a successful enforcement action.  No money has been taken or withheld from harmed investors to pay whistleblower awards. SEC

How Two Wall Street Analysts Became SEC Whistleblowers

Posted  04/27/17
By the C|C Whistleblower Lawyer Team In 2012, an anonymous analyst noticed Texas-based medical device manufacturer Orthofix was outperforming expectations. The analyst suspected that something was off, as the company’s earnings reports showed its wholesale customers were taking longer than usual to pay Orthofix. The company’s executives blamed the delay on logistical problems at foreign offices. The analyst...

January 17, 2017

New York-based asset manager BlackRock Inc. will pay a $340,000 penalty to settle charges that it improperly used separation agreements in which exiting employees were forced to waive their ability to obtain whistleblower awards.  According to the SEC’s order, more than 1,000 departing BlackRock employees signed separation agreements containing violative language stating that they “waive any right to recovery of incentives for reporting of misconduct.”  BlackRock added the waiver provision in October 2011 after the SEC adopted its whistleblower program rules, and the firm continued using it in separation agreements until March 2016.  SEC

July 27, 2016

Connecticut psychiatrist Dr. Anton Fry and his company CPC Associates agreed to pay $36,704 to resolve allegations they violated the False Claims Act by submitting improper claims to Medicare for psychiatric services that were provided over the phone instead of by meeting with the beneficiaries in the office and treating them in person.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Jodi Cohen, a former patient of Dr. Fry, and Medical Bill Consultants, LLC, a billing company.  They will receive a whistleblower award of $6,239 from the proceeds of the government's recovery.  DOJ (DCT)

April 14, 2016

Boston Medical Center (BMC) and two of its physician practice organizations agreed to pay $1.1 million to resolve allegations they violated the False Claims Act by improperly billing Medicare and Medicaid.  Specifically, the government charged that (1) BMC billed Medicare for more units of Rituxan, an expensive cancer drug, than BMC actually infused in its patients; (2) BMC billed Medicare and Medicaid for services at its pre-surgical treatment center even though the global fee for the subsequent surgeries covered those same treatments; and (3) BMC submitted claims to Medicare for outpatient podiatry services where the clinical documentation did not support the reasonableness and necessity of the services.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by BMC’s former Chief Compliance Officer, Kathleen Heffernan.  She will receive a yet-to-be-determined whistleblower award from the proceeds of the government's recovery.  DOJ (DMA)

DOJ Catch of the Week -- Kilgore Flares

Posted  04/1/16
By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to Tennessee-based defense contractor Kilgore Flares Company.  On Monday, the company and one of its subcontractors, New York-based ESM Group Inc., agreed to pay $8 million to resolve charges they violated the False Claims Act by selling defective infrared countermeasure flares to the U.S. Army and, for ESM, knowingly...
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