Author Archives: Site Administrator
U.S. Intervenes in Qui Tam Suit Against PharMerica Corporation
The United States has intervened in a whistleblower lawsuit brought in 2009 against PharMerica Corporation, a pharmacy that dispenses medications to patients in long-term care facilities such as nursing homes. The complaint filed in the U.S. District Court for the Eastern District of Wisconsin alleges that PharMerica violated the False Claims Act and the… Read More »
Wyeth Pharmaceutical Agrees to Settle Off-Label Marketing Allegations
Wyeth Pharmaceutical, Inc., acquired by Pfizer, Inc. in 2009, has agreed to settle criminal and civil allegations concerning its marketing of the prescription drug Rapamune for off-label uses. According to the Justice Department, Wyeth will pay criminal penalties of $157.58 million and forfeit assets of $76 million. In addition, the company will pay $257.4… Read More »
Southern Crescent Hospital Agrees to Settle Qui Tam Suit
Southern Crescent Hospital, a long-term acute care hospital in Riverdale, Georgia, and its manager, the Dubuis Health System, have agreed to settle allegations that they violated the False Claims Act. The Justice Department announced that the pair will pay the United States $8,000,000 to resolve claims that they knowingly overcharged Medicare. Long-term acute care… Read More »
Planned Parenthood Will Pay $1.4 Million to Settle Allegations of Medicaid Fraud
The Texas Attorney General announced that Planned Parenthood Gulf Coast, Inc. (“PPGC”) has agreed to pay $1.4 million to settle claims that it defrauded the Texas Medicaid program. As Medicaid is jointly funded by the state and federal government, a portion of the settlement proceeds will be paid to the federal government. The allegations… Read More »
Michigan Cardiology Practice and Hospital Agree to Settle False Claims Act Allegations
The Justice Department announced the settlement of a whistleblower lawsuit brought under the qui tam provisions of the False Claims Act against Jackson Cardiology Associates (“JCA”), its owner Jashu Patel, M.D., and hospital Allegiance Health – all based in Jackson, Michigan. The complaint was initially brought by cardiologist Julie A. Kovach, M.D. who was… Read More »
U.S. Joins Suit Against Florida Home Health Care Company
The Department of Justice announced that the government has intervened in a False Claims Act action against Ft. Lauderdale-based A Plus Home Health Care, Inc. (“A Plus”) and its owner, Tracy Nemerofsky. The Complaint, filed under the qui tam provisions of the False Claims Act in 2012, was initially brought by whistleblower William Guthrie,… Read More »
The Gallup Organization Agrees to Pay $10.5 Million to Settle False Claims Act Allegations
According to the Department of Justice, The Gallup Organization has agreed to settle a False Claims Act case for $10.5 million. In August 2012, the government partially intervened in the whistleblower lawsuit that was filed in October 2009. Gallup, based in Washington, D.C. is the country’s most well-known polling firm. The whistleblower, Michael Lindley,… Read More »
Hospital Staffing Firm Agrees to Settle Qui Tam Suit for $14.5 Million
Sound Inpatient Physicians, Inc. (“Sound Inpatient”), based in Tacoma, Washington, has agreed to pay the federal government $14.5 million to settle allegations that it knowingly overbilled a number of federal health care programs. Sound Inpatient is a staffing company that provides hospitalists and other post-acute physicians to hospitals and other medical facilities. Hospitalists are… Read More »
Two Shredding Companies Settle Whistleblower Suit
The Department of Justice announced that it has settled a pending qui tam suit with commercial shredding companies Shred-It, Inc. and Iron Mountain, Inc. Ohio-based Cintas Corporation, a third company also named in the suit, continues to contest the allegations. A whistleblower suit was brought under the qui tam provisions of the False Claims… Read More »
SEC Denies One of Four Whistleblower Award Claims Submitted in Connection With Sham Hedge Fund
The Securities and Exchange Commission (“SEC”) has denied one of the four claims for whistleblower award payments submitted in connection with the matter SEC v. Andrey C. Hicks and Locust Offshore Management, LLC. In October 2011, the SEC filed an enforcement action against Locust Offshore Management, LLC and Andrey C. Hicks alleging that it… Read More »