Universal Health Services, one of the nation’s largest healthcare management companies, is embroiled in a suit pending in Sacramento County, California related to allegations brought by private whistleblowers under California’s False Claims Act that the company bilked the state of public money through special education schools the company owns. According to the allegations,
Maryland Lieutenant Governer, Anthony Brown, presently campaigning with Martin O’Malley for re-election this fall, announced that the state’s health department has uncovered $26 million in fraud and waste within the state’s Medicaid program for fiscal year 2010. The Maryland Department of Health and Mental Hygiene has recovered fraudulently obtained funds of approximately $100 million since FY 2006,
On Wednesday, July 21, 2010, President Barack Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act. The law provides sweeping new consumer protections in the form of ending certain predatory consumer lending and providing stricter regulatory oversight of consumer credit mortgages. Further, the new law seeks to halt “over the counter”
Teva Pharmaceuticals, the Israeli generic pharmaceutical manufacturer, has settled, for $169 million, claims pending against it in Texas, California and Florida related to overpricing of its pharmaceutical products. Under the scheme, Teva had provided the drugs at issue to private pharmacies including Walgreens and Wal-Mart at steeply discounted rates, but reported higher prices to the states’
Sodexo, the world’s largest private food purchaser, has agreed to settle claims that it overcharged New York state school districts and the State University of New York from 2004 until 2009. For $20 million, Sodexo will settle the claims of 21 public school districts and SUNY that Sodexo failed to pass along rebates it received from the suppliers of the food and equipment.
Elan Corporation, plc, of Dublin, Ireland has agreed to settle claims related to the marketing of Zonegran, an anti-epileptic drug for which it sold the rights to a Japanese company in 2004. In January of 2006, Elan admitted that the the DOJ and the Department of Health and Human Services were looking into its marketing practices,
The Florida Attorney General settled claims under the state’s false claims act against Office Depot for allegedly overcharging government offices for supplies. The case was settled for $4.5 million. As part of the settlement, the state of Florida will also be reimbursed an additional $1.3 million for its investigative and legal expenses.
The State of Idaho has agreed to settle claims against two groups of the Actavis pharmaceutical company related to allegations that Actavis knowingly inflated reported wholesale prices of certain drugs in order to receive extra compensation from the State’s Medicaid program. For $1.2 million, the two Actavis companies will be released from a lawsuit that was filed in 2007 by the State’s Attorney General against them and other pharmaceutical companies,
Minnesota’s False Claims Act, which will take effect July 1, 2010, differs from its federal and other state counterparts in several key respects that may have a chilling effect on qui tam actions in this state. Whether it’s “Minnesota nice” or an effective deterrent against fraud remains to be seen.
Christiana Care Health System (CCHS) has agreed to pay the United States and the State of Delaware $3.3 Million to settle a whistleblower lawsuit that alleged that CCHS paid kickbacks to, and entered into improper self-referral relationships, with a physicians’ practice located in New Castle, Delaware.
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.