Whistleblower News from the Inside - October 31, 2014

By the C|C Whistleblower Lawyer Team

Dignity Health to pay $37M to settle whistleblower claims — The False Claims Act suit alleged that 13 of Dignity Health’s hospitals in California, Nevada and Arizona submitted false claims to Medicare and TRICARE by admitting patients who could have been treated on a less costly, outpatient basis.  DOJ

49 organizations call on Congress to restore whistleblower rights for intelligence contractors — Led by the Make It Safe Campaign, the diverse group urged for passage of amendment  SA 3711 to the National Defense Authorization Act put forth by U.S. Sen. Claire McCaskill (D-Mo.) to protect intelligence contractors against whistleblower retaliation.  GAP

11th Circuit revives part of whistleblower suit — The appeals court reinstated parts of a former Health Management Associates executive’s whistleblower suit accusing the hospital operator of engaging in an illegal Medicare kickback scheme, finding his position made his allegations sufficiently reliable.  Law360

FTC sues Gerber for false claims — The government alleges the baby food giant is misrepresenting to consumers that its Good Start Gentle baby formula can prevent or reduce allergies in children.  FTC

Government steps up investigation of Takata over defective airbags — The National Highway Traffic Safety Administration demanded Takata turn over records on the production, testing and concerns raised internally and by automakers over the airbags.  NYT

Big banks brace to pay billions in Forex probes — Big banks in the US and Europe are stockpiling billions to pay for a potential trans-Atlantic settlement of allegations they manipulated foreign-exchange rates as talks heat up with regulators on both continents.  WSJ