A recent Senate report stated that for-profit colleges mismanage taxpayer money despite their reliance on federal financial aid which accounts for as much as 90% of their revenue. The report was issued by U.S. Senate Committee on Health, Education, Labor and Pensions which is chaired by Iowa Senator Tom Harkin.
Defense subcontractor, Robbins, LLC, settled False Claims Act allegations filed by a former employee, James Brown of Temple, Georgia. Mr. Brown filed the suit alleging that Robbins used an expired ingredient, Elastomag 170, when mixing a rubber compound used in sonar nose cones for U.S. Navy ships. Goodrich subcontracted with Robbins to prepare two rubber compounds which would form the outer layers of the sonar nose cones.
The District of Columbia Court of Appeals upheld a ban by the U.S. Department of Health & Human Services prohibiting three former executives from serving in the healthcare industry. This 12-year ban affected Perdue Pharma executives, CEO Michael Freedman, General Counsel Howard Udell, and Chief Scientific Officer Paul D.
On August 2, 2012, the Mayo Clinic and three related Mayo entities agreed to settle the False Claims Act suit which was filed in the U.S. District Court for the District of Minnesota.
A recent article revealed that the U.S. government is expected to receive as much as $8 billion this year to resolve charges of defrauding the government. This amount is more than twice the amount anticipated by the Department of Justice. The substantial increase is due in part to the resolution of long-pending actions against defense contractors and pharmaceutical manufacturers.
In a unanimous decision, the U.S. Court of Appeals for the Ninth Circuit determined that knowingly submitting low bids, premised on false estimates, can be a violation of the False Claims Act.
The U.S. Government Accountability Office issued a report stating that 7,000 Medicaid providers in three states had approximately $791 million in unpaid federal taxes from 2009 and earlier. Medicaid providers from Florida, New York, and Texas received approximately $6.6 billion in Medicaid reimbursements during 2009 as a result of the American Recovery and Reinvestment Act.
The Wall Street Journal reports that pharmaceutical giant, Johnson & Johnson, may pay up to $2.2 billion to settle claims for its Risperdal marketing practices, and the settlement may include a criminal fine of approximately $400 million. The settlement would allow Johnson & Johnson to continue to sell its products to government programs.
The Dartmouth Hitchcock Clinic, which serves northern New England residents, has paid over $500,000 to settle claims that six of its neurologists overbilled Medicare and Medicaid. The investigation started with Dartmouth-Hitchcock’s self-disclosure of billing improprieties related to one physician in 2009.
The US Attorney for the Southern District of New York settled false claims against the Local 95 Head Start Employees Welfare Fund for charging a Head Start program more for medical insurance than it had paid for the insurance. The fund administered medical insurance for employees working for agencies that maintain Head Start programs.
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.