Author Archives: Site Administrator
RxAmerica Agrees to Pay $5.25 Million to Settle False Claims Act Allegations
According to the Justice Department, RxAmerica LLC, a wholly owned subsidiary of CVS Caremark Corporation, has agreed to pay the federal government $5.25 million to resolve allegations that it violated the False Claims Act. RxAmerica provides prescription drug benefits to Medicare beneficiaries in what is commonly referred to as a Part D plan. Medicare… Read More »
ReadyOne Industries Settles Whistleblower Case for $5 Million
Texas-based ReadyOne Industries, Inc. (“ReadyOne”), formerly known as the National Center for Employment of the Disabled, has agreed to pay $5 million to the federal government to settle allegations that it committed False Claims Act violations. The allegations were initiated in 2006 by whistleblower Michael Ahumada, a former ReadyOne employee. Ahumada filed a whistleblower… Read More »
Government Intervenes in Qui Tam Action Against Former Department of Energy Contractor
The Department of Justice (“DOJ”) announced that it has intervened in a whistleblower lawsuit against engineering services company CH2M Hill Hanford Group, Inc. (“CH2M”) based in Colorado. The whistleblower, Carl Schroeder, a former employee of CH2M, brought suit against CH2M in 2009 under the qui tam provisions of the False Claims Act. According to… Read More »
HCA Settles Whistleblower Suit Regarding Tennessee Medical Facilities For $16.5 Million
For-profit hospital chain, HCA, Inc., headquartered in Nashville, Tennessee, has agreed to settle a qui tam lawsuit relating to its subsidiaries, Parkridge Medical Center (“Parkridge”) and HCA Physician Services (“Physician Services”). A qui tam action is a whistleblower lawsuit brought by an individual as a “relator” on behalf of the federal government. The settlement… Read More »
Government Decides to Join Qui Tam Action Against Florida Hospice Provider
The Department of Justice has joined in a whistleblower lawsuit against Hospice of the Comforter (“Hospice”) based in Altamonte Springs, Florida. Hospice serves terminally ill patients in Orange, Seminole and Osceola counties. The whistleblower, Douglas Stone, is the former vice president of finance for Hospice. According to Stone’s qui tam complaint filed last year,… Read More »
U.S. Intervenes in False Claims Act Case Naming For-Profit Career Schools
The Department of Justice announced that it has intervened in a whistleblower lawsuit against Texas-based ATI Enterprises, Inc. (“ATI”) for allegedly abusing the federal student aid program in violation of the False Claims Act. ATI operates sixteen for-profit career schools in Florida, Texas, Oklahoma and New Mexico under the names ATI Technical Training Center,… Read More »
US Joins Whistleblower Suit Against The Gallup Organization
According to the Department of Justice, the federal government has decided to partially intervene in a lawsuit against The Gallup Organization initially brought by a whistleblower under the qui tam provisions of the False Claims Act. Gallup, based in Washington, D.C. is the country’s most well-known polling firm. The whistleblower, Michael Lindley, was Gallup’s… Read More »
U.S. Court of Appeals Allows Underbidding Qui Tam Complaint to Continue
A whistleblower has been given the green light by the U. S. Court of Appeals for the Ninth Circuit to pursue a False Claims Act case against Lockheed Martin Corp. (“Lockheed”). The whistleblower alleged that Loral Systems Co., acquired by Lockheed, knowingly underbid on a federal contract in order to win the contract. The… Read More »
Several Adventist Health Hospitals in Central Florida Named in Whistleblower Suit
Adventist Health, based in Altamonte Springs, Florida, has been named in a lawsuit filed under the qui tam provisions of the False Claims Act. The whistleblowers allege that several Adventist hospitals engaged in rampant overbilling of federal healthcare programs for more than a decade. The specific hospitals identified in the suit are Florida Hospital… Read More »
U.S. Joins Whistleblower Lawsuit Against California Community Clinic
The Department of Justice announced that the United States has partially intervened in a qui tam action pending in the Northern District of California. The lawsuit brought under the qui tam provisions of the False Claims act is captioned Trinh v North East Medical Services, Inc. North East Medical Services, Inc. (“NEMS”) is a… Read More »