West Virginia Re-Examining Enactment of False Claims Legislation

On Thursday, the West Virginia House Judiciary Committee again sent legislation which would establish a West Virginia False Claims Act to the House of Delegates. 

According to House Judiciary Chairman Timothy Manchin, the leadership of the House asked the Judiciary Committee to re-examine the legislation because of concerns that the bill would result in a wave of baseless lawsuits.

Whistleblower Case Against OtterBox To Settle

A False Claims Act case filed in federal district court in Denver by a former employee against OtterBox nears settlement. The Fort Collins-based company has until the end of February to finalize a deal. The whistleblower, who worked as OtterBox’s supply chain director, alleged in his lawsuit that the company failed to pay customs duties on the full value of its popular cellphone cases.

Military Contractor Settles Case Of Absentee Employees

The Department of Justice anounced on February 12, 2014 that MPRI Inc., a Virginia-based company, has agreed to pay the United States Government $3.2 Million to resolve a case involving false labor charges for work on a contract to support of the Army in Afghanistan. The case centered on allegations that MPRI billed for employees who had not worked because they were granted leave and were out of the country.

Whistleblower Suit Against Northrop Grumman Unsealed

On Thursday, January 30, 2014, a whistleblower lawsuit alleging that Northrop Grumman defrauded the Department of Homeland Security (“DHS”) was unsealed in federal Court.  According to the suit, which was filed under the qui tam provisions of the False Claims Act by former Northrop Grumman employee Leo Danilides, Northrop Grumman violated the terms of a DHS missile-defense contract for commercial airlines under the Counter-MANPADS program.

DOJ In 2013: Mo’ Problems, Mo’ Money

The Department of Justice raked in more than $8 billion in fiscal year 2013, scoring big on a variety of civil and criminal enforcement actions.

Almost $6 billion came from civil actions, with $3.2 billion related to health-care fraud.  Big hauls included $800 million from a settlement with Abbott Laboratories and about $750 million from a settlement with Amgen.

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