The Justice Department recently filed a False Claims Act action against engineering and construction firm KBR, Inc., the prime contractor on the Army’s Logistics Civil Augmentation Program III contract. As the prime contractor, KBR provided logistics support services to US troops stationed in Iraq.
In a qui tam lawsuit brought by three former employees, Bristol-Myers Squibb (BMS) is accused of fostering a culture that encouraged kickbacks. In a document titled “Bristol-Myers Squibb Cultural Expectations” published for the companies’ sales reps, employees are encouraged to commit company funds and personnel to regions that can produce gains.
In 2005, Guidant (now a division of Boston Scientific) admitted to knowing for three years that their Ventak Prizm heart defibrilator could short circuit, leading to both unnecessary shocks to the heart as well failures to shock when necessary, but the medical device giant did nothing to alert physicians or the public.
In a split 2-1 decision March 28th, the 4th Circuit U.S. Court of Appeals upheld the automatic 60 day sealing provision of the False Claims Act. The suit, brought by the American Civil Liberties Union, the Government Accountability Project and OMB Watch, alleges the secrecy unlawfully blocks the public’s access to judicial proceedings and violates the whistleblower’s right to freedom of speech by forbidding them to discuss the misconduct.
In January 2011, the U.S. Attorney’s office in Manhattan filed a lawsuit against the City of New York, accusing the city’s Human Resources Administration of overbilling Medicaid millions of dollars by abusing the federally funded 24-hour home care program. The suit followed a complaint filed by a whistleblower.
On June 8, 2010, President Obama announced the onset of regional fraud prevention summits; a nationally comprehensive effort to fight health care fraud.
The whistleblower recently awarded $1.1 million by the Internal Revenue Service had initially exposed Enron’s fraudulent practice of generating fictitious income by using abusive tax shelters to the IRS back in 1999. Erika A.
Former Medline Industries, Inc. employee turned whistleblower, Sean Mason, will receive $23.4 million of the $85 million Medline will pay to settle Mason’s lawsuit alleging false claims act violations. Mason’s complaint accuses Medline, an Illinois medical products company, of inducing medical providers such as HCA, Inc. and HealthSouth Corp.
A Bill currently pending before the Washington State Senate would enact a Medicaid False Claims Act to protect against false claims made to the Washington State Medicaid Program. Senate Bill Number 5458 would, like the federal False Claims Act, encourage private whistleblowers (known as qui tam “relators”) to step forward and file a lawsuit against those who submit false claims for payment to the Washington State Medicaid Program.
A telecommunications company, and a New York financial firm have agreed to pay more than $16.5 million to settle a whistleblower lawsuit claiming they defrauded the government. Avaya, which provided desktop phone systems to hundreds of federal and state agencies, was alleged to have billed the government for equipment and maintenance even when the devices didn’t work or had been replaced with upgraded systems.
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.