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False Claims Act Amendments: Increased Exposures For Health Care Providers

One of the biggest liability exposures for healthcare providers has been claims by the federal government relating to alleged Medicare fraud and abuse practices under the False Claim Act and the Fraud Enforcement and Recovery Act of 2009. These statutory changes increase compliance risks, and may result...

2nd Circuit Sends N.J. Whistle-Blower Claims Of Ex-Pfizer Executive Back For Reconsideration

NEW YORK -- (Mealey's) A Second Circuit U.S. Court of Appeals panel on Nov. 17 affirmed summary judgment on federal False Claims Act (FCA) termination claims by former Pfizer executive Peter Rost but reversed judgment as to his claims under New Jersey's whistle-blower protection laws ( Peter...

Foley & Lardner Alert: Government's False Claims Act Complaint Against Major Financial Institution Alleges False Certifications Of Compliance With HUD Underwriting Rules

On May 3, 2011, the U.S. Attorney for the Southern District of New York, Preet Bharara, filed a False Claims Act (FCA) suit against Deutsche Bank AG and its subsidiary, MortgageIT, Inc., for making allegedly false statements and certifications of compliance with HUD rules requiring due diligence in underwriting...

Medtronic Escapes Fraud Claims In Off-Label Stent Litigation

BOSTON - (Mealey's) Finding that two whistle-blowers' False Claims Act (FCA) allegations failed to meet federal pleading requirements for fraud, a Massachusetts federal judge on July 27 dismissed claims that Medtronic Inc. promoted biliary stents for off-label use ( United States of America,...

Cadwalader Client & Friends Memo: A 'Hat Trick' of Heightened False Claims Act Risks for Health Care Providers

Introduction At the risk of stating the obvious, fighting and prosecuting health care fraud are top priorities for the Federal Government, and the False Claims Act ("FCA") is its weapon of choice in the battle. In a speech in June, Stuart Delery, the Acting Assistant Attorney General for...

Williams Mullen: Immigration Fraud Whistleblower Likely to Receive $5M Bounty from Infosys’s $34M False Claims Act Settlement: Is Your Business Immigration Program Prepared for a Similar Whistleblower Attack?

By Mary E. Pivec and John Staige Davis V | On October 30, 2013, Infosys Limited (“Infosys”), an Indian IT company, signed a settlement agreement with the United States in the Eastern District of Texas to resolve allegations that Infosys knowingly presented to employees of the United States...

‘Maybe Just Whistle’: #7 in Financial Fraud Law for the Year

“You know you don’t have to act with me, Steve. You don’t have to say anything, and you don’t have to do anything. Not a thing. Oh, maybe just whistle. You know how to whistle, don’t you, Steve? You just put your lips together and ... blow.” That’s what Lauren...

Final Four in Financial Fraud Law’s Top 10 of the Year Is Coming Next Week!

The Financial Fraud Law Blog Top 10 countdown is nearing conclusion. You already have seen our picks for #10 down through #5, which we summarize below. Stay tuned for the final four picks, coming right after the New Year! We wish all of the readers of the Financial Fraud Law Blog , the subscribers...

New York City Settles Whistleblower Suit Over Medicaid Claims for Psychological Services for Special Education Students

The federal government and the City of New York have settled the case of Ohlmeyer ex rel. United States of America v. City of New York , a whistleblower action brought pursuant to the qui tam provisions of the federal False Claims Act. In its civil complaint, the federal government alleged that the...

Company Admits Defrauding Defense Department of Millions

San Diego-based Vector Planning & Services, Inc., has entered into a deferred prosecution agreement with federal prosecutors in which it admitted to criminally defrauding the Defense Department, and in which it agreed to pay restitution. As part of the agreement, Vector admitted that its former...

US Government Sues Kellogg, Brown & Root Services, Alleging Kickbacks and False Claims Relating to Iraq Support Services Contract

The U.S. government has filed a complaint against Kellogg, Brown & Root Services Inc. (KBR) and Kuwaiti companies La Nouvelle General Trading & Contracting Co. and First Kuwaiti Trading Co. for allegedly submitting false claims in connection with KBR’s contract with the Army to provide...

Lidoderm Settlement Costs Endo Pharmaceuticals $192.7 Million

Pharmaceutical company Endo Health Solutions Inc. and its subsidiary Endo Pharmaceuticals Inc. have agreed to pay $192.7 million to resolve criminal and civil liability arising from Endo’s marketing of the prescription drug Lidoderm for uses not approved as safe and effective by the Food and Drug...

$300 Million Tax Fraud Suit Against Sprint-Nextel May Proceed, Appeals Court Rules

A first-of-its-kind lawsuit against Sprint-Nextel Corporation, alleging that it deliberately undercollected and underpaid millions of dollars in New York State and local sales taxes on flat-rate access charges for wireless calling plans, may continue to trial, a New York appellate court has ruled. ...

Omnicare Reaches $4.19 Million Settlement of Whistleblower Suit Alleging Kickbacks

Omnicare Inc., an Ohio-based long term care pharmacy, has agreed to pay the U.S. government $4.19 million to settle allegations that it engaged in a kickback scheme in violation of the federal False Claims Act. Omnicare provides pharmaceuticals and services to long term care facilities and residents...

Whistleblower to Receive $63.9 Million in JPMorgan Mortgage Loan Case

As readers of the Financial Fraud Law Report and the Financial Fraud Law Blog certainly recall, JPMorgan Chase settled a couple of big, big Madoff-related cases some weeks ago, reaching a $2.05 billion settlement with federal prosecutors over its failure to properly exercise oversight of Bernard Madoff...

Whistleblower Nets $1.1 Million in False Claims Act Case against Bristol-Myers Squibb

New York has reached a $6.2 million settlement of a whistleblower case alleging that a medical imaging company that made millions of dollars’ worth of sales in New York knowingly evaded New York State and New York City taxes. The whistleblower in the action will receive $1,137,814.80 from the...

Foley & Lardner LLP: Hospitals Urging SCOTUS to Limit False Claims Act Penalties

What do a moving company and a hospital association have in common? The False Claims Act (FCA). The American Hospital Association along with the United States Chamber of Commerce and the Pharmaceutical Research and Manufacturers of America recently submitted an amici curiae brief in support of petitioners...

Foley & Lardner LLP: 8th Circuit Dismisses Whistleblower's Suit Finding Facts Were Already Publicly Disclosed

By Jacqueline N. Acosta In an August 7, 2014 opinion, the Eighth Circuit upheld the dismissal of a whistleblower’s suit alleging that a number of pain pump device makers had violated the False Claims Act (FCA) by marketing their pain pumps for harmful off-label uses. United States ex rel. Paulos...

DLA Piper: 9th Circuit Joins Majority Of Circuits To Lower Barrier For Whistleblowers In False Claims Act Lawsuits

By Todd C. Toral and Greg Young The U.S. Court of Appeals for the Ninth Circuit, in a case likely heralding an increase in the number of qui tam False Claims Act lawsuits, has abrogated prior precedent and lowered the jurisdictional bar for whistleblowers in FCA cases. Repudiating 23 years of precedent...

DLA Piper LLP: Federal Court Sides With Government In First Interpretation Of ACA’s 60-day False Claims Act Rule

By Adam J. Rogers , Bradley M. Smyer and Karen Nelson | In a significant development for healthcare providers, a federal court in New York has adopted the government’s interpretation of the 2010 Patient Protection and Affordable Care Act’s (ACA’s) so-called 60-day rule, which governs...

Barnes & Thornburg: DOJ Secures Big Win in First Court Interpretation of FCA’s 60-Day Overpayment Rule

By Jessica Talati On August 3, Judge Edgardo Ramos of the Southern District of New York denied hospital defendants’ motions to dismiss in United States ex rel. Kane v. Healthfirst, Inc., et al . , No. 11 CIV 2325 (S.D.N.Y. Aug. 3, 2015), keeping alive a much-followed whistleblower case accusing...

Williams Mullen: The Definition of Identify: The 60-Day Rule

By Ruth Levy & Patrick C. Devine, Jr. | The Patient Protection and Affordable Care Act (“PPACA”) established that any person who receives an overpayment from the Medicare or Medicaid programs and who does not report and return the overpayment within 60 days after it is identified will...