The New York Attorney General announced an $18 million settlement with Compass Group USA, Inc., a food management services provider, for overcharging 39 schools and school districts across the state. In addition to the monetary settlement, Compass entered into a first ever Nutritional Code of Conduct to ensure better quality food in schools.
Relator Bradley Birkenfeld will receive a $104 million award, for his part in revealing UBS Bank’s illegal offshore banking scheme. It is believed to be the largest award to an individual Relator and the first major award under the IRS Whistleblower Act. Birkenfeld will have to settle for online shopping for the time being as he is currently finishing out his felony sentence for his part in the scheme,
Cornell University has lost its appeal of a 2010 verdict that was the result of a whistleblower lawsuit brought by a former research fellow. The lawsuit alleges that Weil Cornell Medical College and former faculty member Dr. Wilfred van Gorp made false claims to the National Institute of Health (“NIH”) regarding a government funded research grant.
Orthofix’s proposed $7.8 million settlement in a Medicare kickback investigation has been rejected by U.S. District Judge William G. Young. Orthofix had proposed pleading guilty to one count of obstructing a government audit and paying a $7.8 million fine. In rejecting the settlement, Judge Young stated that he had unease in treating a corporate criminal case as a civil case and that the settlement unduly restricted his sentencing power.
The Department of Justice announced on September 6, 2012, that the government has intervened in a whistleblower lawsuit against Hospice of the Comforter Inc. (“HOTCI”) alleging false Medicare. HOTCI provides hospice services to patients residing in the vicinity of Orlando, Fla.
The lawsuit, filed by HOTCI’s former vice-president of finance,
New York Downtown Hospital, located in lower Manhattan near New York City’s financial district, will pay $13.4 million to settle two lawsuits pending in the United States District Court for the Eastern District of New York.
The lawsuits entitled United States and New York State ex rel.
The Institute of Medicine (“IOM”) issued a report on September 6, 2012, finding that the U.S. health care system loses roughly $750 billion a year through “unneeded care, Byzantine paperwork, fraud and other waste.” IOM confirmed that $75 billion of the $750 billion lost is because of healthcare fraud. Besides fraud,
Taxpayers Against Fraud Education Fund recently launched their new website. When you have a few extra minutes, be sure to check it out at www.taf.org.
On July 31, 2012, the U.S. Court of Appeals for the Fifth Circuit rendered an opinion in a case of first impression. The Court held that a federal employee, even one whose job it is to investigate fraud, is a “person” under the False Claims Act and may maintain a qui tam action.
Johnson & Johnson has agreed to pay $181 million to resolve allegations of inappropriate marketing of the drug Risperdal. Thirty-six states and the District of Columbia will share in the settlement money.
The lawsuit alleges that Janssen Pharmaceuticals Inc., a subsidiary of Johnson & Johnson, marketed Risperdal for off-label uses,
If you are aware of any person, corporation or entity that you think may be violating the Federal False Claims Act or a State False Claims Act, contact us today.