St. John’s Medical Center of Santa Monica, California has agreed to repay the federal government $5.25 million to settle claims that it overbilled Medicare. The government alleged that St. John’s “turbocharged” its claims to Medicare by raising charges more quickly than its actual costs rose. According to the government, the practice allowed St.
The Massachusetts Attorney General settled claims of off label marketing with medical device maker, Stryker Biotech. The state claimed that Stryker violated state consumer protection laws by falsifying documents from Massachusetts hospitals’ Institutional Review Boards in order to obtain get approval for the use of its bone growth products.
Furuno USA, settled a qui tam lawsuit against it for supplying electronic equipment to the US Coast Guard and Navy that was manufactured in China in violation of the Federal Trade Agreements Act. The government claimed that Furuno continued to provide Chinese navigation equipment even after it was advised that the equipment could not be manufactured in China.
On August 19, 2010, the U.S. Food and Drug Administration issued a warning letter to DePuy Orthopaedics, Inc., a business unit of Johnson & Johnson, stating that it is marketing two products without required clearance or approvals in violation of the Federal Food, Drug, and Cosmetic Act.
On August 20, 2010, it was announced that a Medicare and Medicaid managed-care company, WellCare Health Plans, Inc., reached a preliminary settlement to pay $137.5 million to settle a False Claims Act case which has been pending for the past four years.
On August 20, 2010, the U.S. Department of Justice announced that two oil companies, Dominion Oklahoma Texas Exploration & Production, Inc. and Marathon Oil Company, will pay the United States $2,219,974.98 and $4,697,476.57, respectively, in an effort to resolve claims that the companies each violated the False Claims Act.
On August 16, 2010, New York Governor David A. Paterson signed into law legislation strengthening New York’s False Claims Act. The New York False Claims Act allows individuals to bring civil actions (“qui tam”) on behalf of the state to recover fraudulent payments and overpayments made to third-party suppliers of goods and services.
Last Friday, Nelnet announced that it would pay $55 million to settle a False Claims Act suit alleging that the company defrauded the federal government by improperly benefiting from a student loan subsidy program. The suit, brought by Jon Oberg, alleged that Nelnet exploited a loophole in federal law that allowed Nelnet to guarantee that it would receive 9.5% interest on student loans offered by the company and subsidized by the government.
Late last month, a federal court in Virginia ruled that the government may proceed with a False Claims Act suit against a juvenile psychiatric facility run by subsidiaries of Universal Health Services, Inc. The suit alleges that the Marion Youth Center, a treatment center for adolescent boys, submitted false claims to Medicaid.
Last week, the United States Department of Justice announced that it would intervene in a False Claims Act suit against St. Jude Medical, Inc., alleging that the manufacturer of pacemakers and other heart devices participated in an illegal kickback scheme resulting in the submission of false claims for reimbursement to the government.
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.