The U.S. Department of Justice has announced the most recent statistics indicating the overwhelming success of the U.S. False Claims Act. Initially signed into law during the U.S. Civil War to address fraudulent government contractors, the False Claims Act has been strengthened over the years, most notably in 1987 by President Ronald Reagan.
On January 17, 2012, the Securities and Exchange Commission announced Jane A. Norberg, as the Deputy Chief of the Office of the Whistleblower, responsible for oversight of the agency’s whistleblower program. The Office of the Whistleblower ensures that whistleblower complaints are handled appropriately and makes recommendations to the SEC regarding whether an individual is eligible for an award.
Philadelphia, Friday, January 20, 2012: United States Attorney for the Eastern District of Pennsylvania Zane David Memeger and the United States Department of Justice announced today that The Boeing Company, the largest manufacturer of commercial jets and military aircraft combined, has agreed to pay $4,392,779.74 to settle a Federal False Claims Act whistleblower lawsuit brought by current Boeing employee Vincent A.
Taxpayers Against Fraud foresees more than $9 billion in False Claims Act recoveries, “…counting civil, state and criminal fines – is within the realm of possible for FY 2012,” stated Patrick Burns of TAF. The cases settled or lined up for settlement included: Merck ($950 million); GlaxoSmithKline ($3 billion); Abbott ($1.
To resolve allegations of submitting false claims, Norfolk-based Maersk Line Limited and its Danish affiliate, Maersk Line, agreed to a global settlement of $31.9 million to the federal government. It was alleged that Maersk “knowingly overcharged the Department of Defense to transport thousands of containers from ports to inland delivery destinations in Iraq and Afghanistan,” per an announcement released from the Justice Department.
As the most comprehensive website dedicated to the False Claims Act and related statutes, www.falseclaimsact.com contains a wealth of information on the federal False Claims Act, every state false claims act, the IRS whistleblower law, and the SEC whistleblower law. The site has been updated again and now contains the text of all of the nation’s municipal false claims acts with qui tam provisions.
GE Healthcare, a major, international provider of pharmaceuticals and technology, agreed to pay $30 million to the U.S. to settle allegations that it improperly billed Medicare for its radiopharmaceutical drug Myoview.
Merck & Co, Inc., the second largest drug manufacturer in the nation, agreed to pay $24 million to the Commonwealth of Massachusetts to settle allegations that it knowingly reported inflated drug prices to the Massachusetts Medicaid program.
The Department of Justice announced that Kaman Precision Products, Inc., an Orlando-based defense contractor, will pay $4.75 million to the U.S. to settle allegations that it sold non-conforming fuzes to be used in “bunkerbombs” to the U.S. Army. The settlement arose from a False Claims Act suit filed by the U.S.
The Department of Justice (DOJ) announced that it has recovered over $3 billion in settlements and judgments under the False Claims Act in 2011. Of that $3 billion, $2.8 billion was recovered under the qui tam provisions of the False Claims Act. This is the second year in a row that the DOJ has recovered more than $3 billion under the Act and it has now collected more than $8.7 billion under the Act since January 2009.
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.