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Whistleblower News From The Inside -- October 20, 2016

Posted  October 20, 2016

By the C|C Whistleblower Lawyer Team

Eighth Circuit revives FCA suit against for-profit college – The Eighth Circuit overturned a lower court ruling and revived for the second time a whistleblower’s FCA suit alleging Heritage College falsified student records to maintain eligibility for federal aid money. The court, citing Escobar, concluded the health care training school’s falsifications were material to the government’s payment. Inside Higher Ed

California whistleblower’s actions lead to $2.24M Omnicare settlement – Omnicare, the long-term care pharmacy acquired by CVS that recently agreed to pay $28M to settle kickback charges, will pay another $2.24M to resolve a whistleblower’s allegations that, between 2006 and 2014, Omnicare employees manually altered prescription information on claims resubmitted to Medicare, Medicaid, and TRICARE, to overcome prior rejection of these claims for payment. Central Valley Business Times

Australian litigation finance firm looks to invest in US whistleblower case – Australian litigation financing firm Bentham IMF’s identically named US subsidiary announced it is unrolling a program to finance whistleblower lawsuits. The minimum investment Bentham IMF will make is $1M. Bloomberg

FCA suit against South Carolina hospital unsealed – A former compensation coordinator of Spartanburg Regional Healthcare System alleges the system filed false claims with Medicare and Medicaid and paid physicians above market value. The suit was filed in September 2015 and unsealed last week. Becker’s Hospital Review

California attorney general investigating Wells Fargo on allegations of criminal identity theft – The California Department of Justice is investigating Wells Fargo on criminal identify theft allegations stemming from bank employees’ creation of millions of unauthorized accounts. Los Angeles Times