Maryland Biotech Company Pays $934,000 to Settle False Claims Act Lawsuit

Advanced BioNutrition Corporation, of Columbia, Maryland, and its former chief executive officer, David Kyle, paid the federal government $934,000, stemming from violations of the False Claims Act, federal prosecutors said Thursday. Advanced BioNutrition Corporation was awarded the first phase of a National Science Foundation Small Business Innovation Research grant in February 2005 to develop technology to micro-encapsulate probiotic bacteria into particles.

Dermatologist Pays $2.75 million to settle false Claims Suit

A New York dermatologist settled a false claim lawsuit against him for $2.75 million.  The physician was able to collect higher reimbursements from Medicaid by classifying himself as a primary care physician instead of as a dermatologist, allowing him to collect fees for services not actually provided.

More information can be found at: http://online.wsj.com/article/BT-CO-20100610-711174.

OIG Seeks to Bar Executives of Companies that committed Fraud from Medicare

The Office of Inspector General is seeking new powers from Congress to exclude offending corporate executives from Medicare if their companies committed healthcare fraud.  Under current law, OIG can only seek to bar executives from working for the companies that committed fraud.  However, they are still able to work for other companies in the healthcare industry.

Cochlear Americas settles False Claims Case for $880,000

Cochlear America, a manufacturer of cochlear implants, has settled a false claims case against it, alleging that it made illegal payments to health care providers to induce the purchase of its implant systems.  Cochlear implants are small, complex electronic devices that can help to provide a sense of sound to a person who is profoundly deaf or severely hard-of-hearing.

Johnson and Johnson Moves to Dismiss Anti-Kickback Lawsuit on Grounds that its Conduct Constituted Acceptable Business Practices

Johnson and Johnson filed a motion to dismiss a lawsuit against it under the False Claims Act for allegedly paying kickbacks to Omnicare, Inc to push Johnson & Johnson drugs to nursing home patients.  Omnicare earlier settled a lawsuit against it for $98 million for accepting such kickbacks, although Omnicare denied liability.

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