False Claims Act and Whistleblower News

The False Claims Act enables a private citizen with unique knowledge of fraud committed against the federal government (such as health care fraud, contract fraud, and tax fraud) to file a lawsuit under seal (not accessible to the public) seeking treble (triple the amount) damages on behalf of the government...
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recent posts - false claims act (FCA)

February 25, 2014
Delaware-based Endo Health Solutions Inc. and its subsidiary Endo Pharmaceuticals Inc. (Endo) have agreed to pay $171.9 million to settle allegations that the company improperly marketed the prescription drug Lidoderm for uses not approved by the Food and Drug Administration (FDA), resulting in false claims submitted to federal health care programs such as Medicaid, the Department of Justice announced last week.  Endo will pay an additional $20.8 million in penalties and forfeiture of... full text
February 21, 2014
The U.S. government has intervened in a False Claims Act Lawsuit against Tenet Healthcare Corp. and four of its hospitals in Georgia and South Carolina, as well as another hospital in Georgia that is owned by Health Management Associates (HMA), the Department of Justice announced earlier this week.  Tenet and HMA are two of the largest owner/operators of hospitals in the United States.  The government also is intervening against the clinics and related entities known as Hispanic... full text
February 20, 2014
Washington-based EndoGastric Solutions has agreed to pay the U.S. government up to $5.25 million to resolve allegations that the company violated the False Claims Act and the Anti-Kickback Statute by misleading health care providers in how to bill federal health care programs and paying kickbacks to certain physicians, the Department of Justice announced yesterday. EndoGastric Solutions manufactures and sells a device called EsophyX that is intended to treat gastroesophageal reflux disease,... full text
February 18, 2014
Vector Planning and Service Inc. (VPSI) has agreed to pay the government $6.5 million to settle False Claim Act allegations that the company inflated claims for payments under several Navy contracts, the Justice Department announced today. VPSI, an information technology and systems engineering firm, has a number of contracts with the U.S. Navy to provide information technology, systems engineering, and management consulting services. Under these contracts, VPSI is entitled to bill the... full text
February 14, 2014
MPRI Inc. has agreed to pay $3.2 million to resolve allegations under the False Claims Act that it submitted false labor charges on a contract to support the Army in Afghanistan, the Justice Department announced earlier this week. MPRI allegedly billed for employees who had been granted leave and were out of the country and were thus not working.  Under its contract with the Army, MPRI was required to provide support to the Army in its efforts to re-design and build from a new Afghan... full text
February 12, 2014
Sanborn Map Company Inc. (Sanborn) has agreed to pay $2.1 million to the U.S. government to resolve allegations under the False Claims Act that it submitted false claims in connection with U. S. Army Corps of Engineers contracts, the Justice Department announced earlier this week. The U.S. Army Corp of Engineers contracted Sanborn to produce maps for U.S. convoy routes in Iraq, Marine Corps bases in the U. S., and other military and civilian projects. Allegedly, Sanborn used unapproved... full text
February 10, 2014
A lawsuit against StarKist’s parent company, Dongwon Industries (Dongwon), has been filed under the False Claims Act for making false statements to secure vessel certification and fishing licenses, Undercurrent News announced last week. Allegedly, Dongwon knowingly submitted false information to obtain documentation allowing two Korean owned companies, Majestic Blue and Pacific Breeze, to receive tuna fishing licenses under the South Pacific Tuna Treaty (SPTT). These licenses are reserved... full text
February 5, 2014
JPMorgan Chase (JPMC) will pay $614 million for violating the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans submitted for insurance coverage and guarantees, the Department of Justice announced yesterday. JPMC admitted that, for more than a decade, it approved thousands of Federal Housing Administration (FHA) loans and hundreds of Veterans Affairs (VA) loans that were not eligible for FHA or VA insurance because they did not meet applicable agency... full text
January 31, 2014
Prime Healthcare Services Inc. (PHS) is being sued by an employee whistleblower, Karin Berntsen, for allegations under the False Claims Act that they knowingly falsified patients’ admission information, Law360 announced earlier this month. PHS allegedly directed hospital staff to falsify patients’ diagnoses in order to charge the highest amount to Medicare and Medicaid. PHS also refused to release patients to post-acute care centers so they could further their profits. It is further... full text
January 29, 2014
Saint Joseph Health System, Inc. has agreed to pay the U.S. Government $16.5 million to resolve allegations under the False Claims Act that they submitted false or fraudulent claims to the Medicare and Kentucky Medicaid programs for a variety of medically unnecessary heart procedures, the Justice Department announced today. Several doctors working at the Saint Joseph London Hospital allegedly performed numerous invasive cardiac procedures on Medicare and Medicaid patients who did not need them... full text