Whistleblower Rewards

Radiology Practice - Healthcare Fraud/Unnecessary Testing ($10.5M)

Constantine Cannon represented two whistleblowers in a False Claims Act case alleging New York-based Zwanger-Pesiri Radiology improperly billed Medicare for testing that was medically unnecessary or never performed.  In November 2016, the company agreed to pay $10.5 million to settle both criminal and civil charges.  Our clients received a whistleblower award of more than $1 million.  Read more -- Newsday, DOJ, PR Newswire, CC.

November 17, 2016

Constantine Cannon is pleased to announce that its qui tam clients Linda Gibb and Donna Geraci aided the U.S. government and the State of New York in recovering more than $10 million over allegations of systemic Medicare and Medicaid fraud by Zwanger-Pesiri Radiology.  Click here for the press release in PR Newswire.

November 7, 2016

Pennsylvania-based medical device manufacturer Biocompatibles Inc., a subsidiary of British-based BTG plc, pleaded guilty and agreed to pay more than $36 million for violating the False Claims Act and Food, Drug and Cosmetic Act by misbranding its embolic device LC Bead, which is used to treat liver cancer, among other diseases, and by marketing and selling the product for uses not approved by the FDA.  The matter originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Ryan Bliss who oversaw Bicompatibles’ North American marketing.  He will receive a whistleblower award of approximately $5.1 million from the proceeds of the government’s False Claims Act recovery.  Whistleblower Insider

November 4, 2016

California-based aerospace parts company Air Industries Corporation agreed to pay $2.7 million to resolve allegations it violated the False Claims Act by falsely certifying it had performed required inspections on aerospace parts used in military aircraft, spacecraft and missiles used by the Department of Defense.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by an AIC employee.  The employee will receive a whistleblower award of $621,000 from the proceeds of the government's recovery.  DOJ (CDCA)

November 1, 2016

The City of Fairfield, California and the Fairfield Housing Authority paid $680,000 to settle False Claims Act allegations that they received grants to fund two coordinator positions for a federal housing program but did not use the funds for that purpose.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a former FHA employee.  The whistleblower will receive a whistleblower award of roughly $129,000 from the proceeds of the government's recovery.  DOJ (EDCA)

October 25, 2016

Kansas City-based Best Choice Home Health Care Agency Inc. and its owner Reginald King agreed to pay $1.8 million to resolve allegations they violated the False Claims Act by paying kickbacks for the referral of Medicaid-covered patients for home and community-based healthcare services.  According to the government, King paid kickbacks to patient transporter Christopher Thomas for referrals to Best Choice.  The allegations originated in a whistleblower lawsuit filed by Thomas under the qui tam provisions of the False Claims Act.  Thomas will receive a whistleblower reward of $43,178, which represents 10 percent of the federal share of the settlement minus the amount he received in kickbacks.  DOJ

October 24, 2016

Life Care Centers of America Inc., the Tennessee-based operator of more than 220 skilled nursing facilities, and its owner Forrest L. Preston, agreed to pay $145 million to resolve charges that Life Care violated the False Claims Act by submitting claims to Medicare and TRICARE for rehabilitation therapy services that were not reasonable, necessary or skilled.  It is the largest settlement with a skilled nursing facility chain in DOJ’s history.  The allegations originated in a whistleblower lawsuit filed by former Life Care employees Tammie Taylor and Glenda Martin under the qui tam provisions of the False Claims Act.  They will receive a whistleblower award of $29 million from the proceeds of the government’s recovery.  Whistleblower Insider

October 21, 2016

New York-based hematology and oncology practice Hudson Valley Associates agreed to pay $5.31 million to settle charges of violating the False Claims Act by improperly waiving patient copayments and submitting claims for services it did not provide and/or were not permitted under the Medicare and Medicaid program rules.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower will receive a yet-to-be-determined whistleblower award from the proceeds of the government's recovery.  DOJ (SDNY)

October 17, 2016

Ohio-based nursing home pharmacy Omnicare, Inc. agreed to pay roughly $28 million to resolve charges of violating the False Claims Act by soliciting and receiving kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting the prescription drug, Depakote, for nursing home patients.  The settlement follows the May 2012 settlement under which Abbott agreed to pay $1.5 billion to resolve Abbott’s liability under the False Claims Act for, among other things, alleged kickbacks to nursing home pharmacies, including Omnicare and PharMerica Corp.  In October 2015, PharMerica agreed to pay $9.25 million to settle its role in the alleged scheme.  The allegations underlying this settlement as well as the prior Abbott and PharMerica settlements originated in two whistleblower lawsuits filed by former Abbott employees Richard Spetter and Meredith McCoyd under the qui tam provisions of the False Claims Act.  Ms. McCoyd will receive a whistleblower award of $3 million from the proceeds of this settlement.  Whistleblower Insider