False Claims / Whistleblowers

June 17, 2013
Virginia-based Science Applications International Corporation (SAIC) has paid $11.75 million to resolve allegations that the company violated the False Claims Act by charging inflated prices against grant money provided by the U.S. government to train first responder personnel to prevent and respond to terrorist attacks, the U.S. Department of Justice announced last week. SAIC...
June 7, 2013
Ohio-based companies TesTech and CESO have agreed to pay $2.88 million to resolve allegations that they knowingly submitted or caused the submission of false claims to federal agencies when they falsely claimed disadvantaged business status in order to obtain federal funds related to a number of federal transportation projects, the U.S. Department of Justice announced...
June 3, 2013
American Commercial Colleges Inc. (ACC), a Texas-based for-profit corporation, has agreed to pay the United States government up to $2.5 million, including interest, to resolve allegations that they knowingly submitted or caused the submission of false claims to federal student aid programs, the U.S. Department of Justice announced last week. In order to be eligible for...
May 31, 2013
Recent amendments to the federal False Claims Act have expanded whistleblower protections and increased penalties for violators.  The amendments came in the form of the federal Deficit Reduction Act, the Fraud Enforcement and Recovery Act, the Affordable Care Act, and the Dodd-Frank Act. California revamped its own False Claims Act earlier this year to bring it into...
May 28, 2013
ISTA Pharmaceuticals has pleaded guilty to federal felony charges of conspiracy to introduce a misbranded drug into interstate commerce and conspiracy to pay illegal remuneration in violation of the Federal Anti-Kickback Statute, the U.S. Department of Justice announced last week.  In addition to criminal fines and asset forfeiture, ISTA has also entered into a civil...
May 24, 2013
Parkland Memorial Hospital of Dallas, Texas has agreed to pay a $1.4 million settlement to resolve allegations that they knowingly submitted or caused the submission of false claims to Medicare and Medicaid, the Dallas Morning News reported recently.  Parkland has also agreed to enter into a corporate integrity agreement with federal health regulators to monitor future...
May 21, 2013
Texas-based U.S. Renal Care has agreed to pay $7.3 million to resolve allegations that their subsidiary, Dialysis Corporation of America (DCA), violated the False Claims Act by knowingly submitting false claims to the Medicare program for more medication than was actually administered to dialysis patients, the U.S. Department of Justice announced today. Epogen is an...
May 17, 2013
In the largest drug safety settlement of its kind to date, generic drug manufacturer Ranbaxy USA Inc. pleaded guilty to felony charges relating to the manufacture and distribution of adulterated drugs, as well as violation of the False Claims Act, the U.S. Department of Justice announced this week.  Ranbaxy agreed to pay a criminal fine and forfeiture amounting to $150...
May 16, 2013
New Jersey-based C.R. Bard has agreed to pay the U.S. government $48.26 million to resolve allegations that it knowingly caused false claims to be submitted to Medicare for brachytherapy seeds used to treat prostate cancer, the U.S. Department of Justice announced this week. The United States alleged that from 1998 to 2006, Bard violated the Anti-Kickback Statute when the...
May 9, 2013
A federal jury has found South Carolina-based Tuomey Healthcare System violated the Stark Law and the False Claims Act when it collected nearly $40 million in fraudulent Medicare claims, reported Sumter, S.C.’s The Item. Tuomey Healthcare System was accused of signing 19 doctors to lucrative part-time contracts that paid well above fair market value in order to continue...