CA Slaughterhouses Settle False Claims for up to $2.4M; Whistleblower to Get $600K
Several California companies and individuals that formerly supplied beef to the National School Lunch Program have agreed to settle allegations, under the False Claims Act, of inhumane handling of cattle, circumventing appropriate inspection of non-ambulatory disabled (“downer”) cattle and false representations regarding their eligibility to process beef, the Justice Department announced last week.
The Humane Society of the United States (HSUS) alleges that Westland Meat Co., Westland, M&M Management and Cattleman’s Choice knowingly engaged in inhumane cattle handling and improper downer cattle inspection practices at slaughterhouses and meat processing facilities. The lawsuit, brought about after an HSUS investigator videotaped these practices, additionally claims that the defendants concealed their ineligibility to process beef because a convicted felon, Aaron Magidow, was a partner in and otherwise responsibly connected with the facility’s operations. U.S. Department of Agriculture (USDA) regulations applicable to suppliers of the National School Lunch Program prohibit the inhumane handling of cattle, require the proper inspection and disposition of downer cattle and require suppliers to identify convicted felons who are responsibly connected to the suppliers’ operations.
The National School Lunch Program, administered by the USDA, is a federally assisted meal program operating in public and nonprofit private schools and residential child-care institutions. The program provides nutritionally balanced, low-cost or free lunches to children each school day. All ground beef products from the defendants were recalled and the defendants no longer supply beef to the National School Lunch Program.
Under the settlements, Westland Meat Co. and its owner, Steve Mendell, will pay $240,000. Westland will enter into a consent judgment for $155.68 million. M&M Management, Cattleman’s Choice and the estate of Cattleman’s deceased owner, Arnie Magidow, and Magidow’s surviving spouse will pay a total of approximately $2.45 million. Donald R. Hallmark and Donald W. Hallmark will also settle allegations for $304,130.
The lawsuit was originally filed by HSUS under the whistleblower provision of the False Claims Act. The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. HSUS will receive $600,000 as their portion of the settlement.
The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments. We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud. Read more about our expertise in False Claims Act cases and how you can take action.