Whistleblower Rewards

March 18, 2014

American Family Care Inc., a network of walk-in medical clinics with offices in Alabama, Tennessee and Georgia, agreed to pay $1.2M to resolve allegations under the False Claims Act that it knowingly submitted claims to Medicare for outpatient office visits that were billed at a higher rate than was appropriate.  The settlement resolves a qui tam lawsuit filed by Anita C. Salters, a former employee of American Family Care under the whistleblower provision of the False Claims Act.  DOJ

March 11, 2014

Florida-based hospital system Halifax Hospital Medical Center agreed to pay $85M to resolve allegations that they violated the False Claims Act and Stark Law by executing contracts with six medical oncologists that provided an incentive bonus that improperly included the value of prescription drugs and tests that the oncologists ordered and Halifax billed to Medicare.  The allegations were first raised in a qui tam lawsuit filed by Halifax Hospital employee Elin Baklid-Kunz under the whistleblower provisions of the False Claims Act.  She will receive a whistleblower award of $20.8 million.  DOJ

March 7, 2014

Ocean shipping companies Sea Star Line and Horizon Lines agreed to pay $1.9M and $1.5M, respectively, to resolve allegations that they violated the False Claims Act by fixing the price of government cargo transportation contracts between the continental US and Puerto Rico, the Department of Justice announced today.  The allegations were first raised in a qui tam lawsuit filed by former Sea Star Line executive William B. Stallings under the whistleblower provisions of the False Claims Act.  He will receive a whistleblower award of $512,719.  DOJ

Visa/MasterCard - Antitrust Violations ($3 billion)

Constantine Cannon served as lead counsel representing Wal-Mart, Sears, Safeway and a class of roughly 5 million U.S. merchants in this antitrust class action alleging various forms of misconduct by Visa and MasterCard in their rules governing the use and marketing of Visa/MasterCard branded credit cards and debit cards.  After winning summary judgment on a majority of the claims, the parties settled the case in May 2003 with the plaintiff merchants Constantine Cannon served as lead counsel representing Wal-Mart, Sears, Safeway and a class of roughly 5 million U.S. merchants in this antitrust class action alleging various forms of misconduct by Visa and MasterCard in their rules governing the use and marketing of Visa/MasterCard branded credit cards and debit cards.  After winning summary judgment on a majority of the claims, the parties settled the case in May 2003 with the plaintiff merchants.