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From the monthly archives: April 2012

A whistleblower lawsuit brought by a former employee at Cablepress Corp. (“CXtec”) has reached a partia settlement  according to a press release issued by the Department of Justice on Monday.  The law suit, brought under the qui tam provision of the False Claims Act, alleges that [...]

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Walgreens Co., which operates the largest drug retailing chain in the United States, has agreed to pay $7.9 million to resolve whistleblower allegations the company violated the False Claims Act by illegally inducing Medicare and Medicaid customers to transfer their prescriptions from another pharmacy to Walgreens by offering financial inducements in the form of gift [...]

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A federal court recently unsealed a qui tam, or whistleblower, action alleging violations of the False Claims Act through a widespread fraud scheme perpetrated by Sacred Heart Health System, the Medical Center Clinic, and a two-doctor radiation oncology practice located in Florida.  The qui tam complaint was unsealed after the government decided to [...]

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A federal judge rejected a motion to dismiss an amended complaint alleging employer retaliation claims under section 3730(h) of the False Claims Act filed by former Boston Scientific employee Elaine George.  According to the amended complaint, George raised concerns with managers and training officials at the company concerning the off-label promotion of [...]

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The McKesson Corporation settled False Claims Act charges with the federal government concerning allegations the drug wholesaler submitted false pricing information to publishers of drug prices upon which most state Medicaid programs rely on to set prices, resulting in overpayment of drugs at the expense of taxpayers. The $190 million settlement resolves federal claims filed against [...]

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The Department of Justice announced today that the United States will intervene in a False Claims Act lawsuit brought by a whistleblower against a Japanese manufacturer of printing and ink products.  The lawsuit, brought under the qui tam provisions of the False Claims Act, alleges that Toyo Ink Manufcaturing Co. Ltd and its subsidiaries (“Toyo”) avoided required [...]

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Anthony Allega Cement Contractor Inc. (“Allega”), a Cleveland-based construction firm, has resolved alleged violations of the False Claims Act through a settlement announced by the Department of Justice earlier this week.  Under the False Claims Act, the government may recover up to three times the amount of money lost to the fraudulent action and [...]

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ATK Launch Systems Inc. (“ATK”) has agreed to a settlement worth nearly $39 million to resolve False Claims Act allegations that the defense contractor sold defective and dangerous illumination flares to the United States Army and Air Force.  Pursuant to the settlement agreement, ATK will provide roughly $16 million worth of services to repair 76,000 existing para-flares [...]

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New York Attorney General Eric Schneiderman announced on Thursday that the state decided to intervene and join a qui tam lawsuit filed by a whistleblower against Sprint Nextel Corp. for the company’s alleged violations New York State False Claims Act.  The suit has attracted notable attention as it is the first whistleblower tax case filed under [...]

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Georgia Governor Nathan Deal signed into law the Taxpayer Protection False Claims Act on April 16, 2012, signficantly expanding upon the state’s existing false claims law, the Georgia False Medicaid Claims Act.  Both chambers of the Georgia legislature voted unanimously to approve the bill, eliciting strong vocal support and themes of preservation of taxpayer dollars.

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The American Hopsital Association (AHA) recently issued critical comments in response to a proposed rule concerning the reporting and returning of overpayments paid to health care providers and suppliers by a federal health care program such as Medicare and Medicaid.  The proposed rule, issued on February 16, 2012 and listed in the federal registrar [...]

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Although New York passed a state False Claims Act in 2007, New York City is one of several major cities with local ordinances enforcing a city False Claims Act.  The New York City False Claims Act enacted in 2005 proved to be a pioneering legislative exercise which  led [...]

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