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)

June 7, 2016
Genentech Inc. and OSI Pharmaceuticals LLC have agreed to collectively pay $67 to resolve allegations that the pharmaceutical companies knowingly submitted or caused the submission of false claims in connection with misleading statements about the effectiveness of the drug Tarceva in treating non-small cell lung cancer, the U.S. Department of Justice announced yesterday.  Genentech and OSI Pharmaceuticals co-promote Tarceva, which is approved to treat certain patients with non-small cell... full text
June 2, 2016
The federal government has intervened in a lawsuit against Prime Healthcare Services Inc. and its founder and CEO, Dr. Prem Reddy, alleging that Prime knowingly submitted or caused the submission of false claims to Medicare by improperly admitting patients, the U.S. Department of Justice announced last week. The lawsuit alleges that Dr. Reddy directed the corporate practice of pressuring Prime’s Emergency Department physicians and hospital administrators to raise inpatient admission rates... full text
May 25, 2016
The United States has filed a complaint in the U.S. District Court for the District of Columbia against Guild Mortgage Company, alleging that the company knowingly submitted or caused the submission of false claims to the federal government by improperly originating and underwriting mortgages insured by the Federal Housing Administration (FHA), the U.S. Department of Justice announced last week.  Guild is a mortgage lender headquartered in San Diego, California. Guild participated in the... full text
May 20, 2016
M&T Bank Corp. has agreed to pay the United States $64 million to resolve allegations that it knowingly submitted or caused the submission of false claims to the federal government by originating and underwriting mortgage loans that did not meet applicable requirements, the U.S. Department of Justice announced last week. During the time period covered by the settlement, M&T Bank participated as a direct endorsement lender (DEL) in the Federal Housing Administration (FHA) insurance... full text
May 10, 2016
Hollister Inc., a manufacturer of disposable health care products, and Byram Healthcare Centers Inc., a supplier of medical products, have to agreed to collectively pay $20.9 million to resolve allegations that the companies violated anti-kickback legislation that resulted in the submission of false claims to California's Medicaid program, Medi-Cal, the U.S. Department of Justice announced last month. The settlement with Hollister resolves allegations that it paid kickbacks to Byram in... full text
May 3, 2016
California-based Z Gallerie has agreed to pay the federal government $15 million to settle allegations that the upscale furniture retailer knowingly submitted or caused the submission of false claims when it evaded customs duties on imports of wooden bedroom furniture from the People’s Republic of China (PRC), the U.S. Department of Justice announced last week. The Department of Commerce assesses, and the U.S. Department of Homeland Security’s Customs and Border Protection (CBP)... full text
April 29, 2016
Pharmaceutical companies Wyeth and Pfizer Inc. have agreed to pay $784.6 million to resolve allegations that Wyeth knowingly submitted or caused the submission of false claims in connection to two of its proton pump inhibitor (PPI) drugs, Protonix Oral and Protonix IV, the U.S. Department of Justice announced earlier this week.  Pfizer, which is headquartered in New York City, acquired New Jersey-based Wyeth in 2009, approximately three years after Wyeth had ended the conduct that gave... full text
March 29, 2016
Kilgore Flares Company and subcontractor ESM Group Inc. have agreed to pay the federal government $8 million to resolve allegations that the companies knowingly submitted or caused the submission of false claims by selling defective infrared countermeasure flares to the U.S. Army and evading customs duties, the U.S. Department of Justice announced yesterday.  Tennessee-based Kilgore Flares manufactures and sells electronics and energetic products, such as flares, to the U.S. military.... full text
March 25, 2016
Respironics Inc. has agreed to pay $34.8 million to resolve allegations that the company knowingly submitted or caused the submission of false claims to state and federal health care programs, the U.S. Department of Justice announced earlier this week. The United States alleged that Respironics violated the Anti-Kickback Statute and the False Claims Act by providing free services to durable medical equipment (DME) suppliers to induce them to purchase Respironics masks that treat sleep apnea.... full text
March 22, 2016
Bard College has agreed to pay $4 million in order to resolve allegations that the college violated the False Claims Act by failing to comply with the conditions of federal grant money, the U.S. Attorney’s Office for the Eastern District of California announced earlier this month. Bard College, a nonprofit institution with its main campus in Annandale-on-Hudson, New York, received funds under the Department of Education’s Teacher Quality Partnership Grant Program. The settlement... full text