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 ($1.5 billion);
Category: State False Claims Acts
Merck Settles Massachusetts Medicaid Fraud Allegations for $24 Million—Total Recovery Now $47 Million
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 $24 million settlement is the largest single payment made to the Commonwealth for any one Medicaid fraud case in the state’s history,
KV Pharmaceutical Company, the St. Louis parent corporation of the now defunct Ethex Corporation, has agreed to pay $17 million to the federal and state governments to resolve allegations that Ethex fraudulently received reimbursement for two of its drugs from federal healthcare programs. According to allegations made by relator Constance Conrad in U.S.
- December 06, 2011
- State False Claims Acts
In an excellent op-ed piece written for the Lehigh Valley’s Morning Call, David Williams of Kline & Specter describes why Pennsylvania needs a False Claims Act to combat fraud against the state. Citing a 2005 study by the Pennsylvania attorney general’s office, Williams notes that fraudulent activities have consumed more than ten percent of Pennsylvania’s healthcare costs.
New York City has agreed to pay the federal government $70 million to settle claims that it allegedly overbilled Medicaid by improperly approving home care for elderly clients. As part of the settlement, NYC admitted that it reauthorized treatment of a number of patients without having first obtained required assessments from doctors,
The U.S. Attorney for the Southern District of Indiana announced on October 19, 2011, that Premier Home Care, a durable medical equipment provider in Southern Indiana, had agreed to pay $600,000 to the United States and to the State of Indiana for violations of the False Claims Act. This qui tam suit was filed in 2008 by a former Premier employee who alleged that the company violated the False Claims Act by falsely certifying its compliance with state licensing requirements when it used unlicensed personnel to set up respiratory ventilation machines for patients.
A $3.85 million settlement involving a customs fraud scheme carried out by a Hong-Kong based jewelry manufacturer and its partners has recently been made public. Kirby McInerney LLP filed the action under the FCA on behalf of its client, a whistleblower who learned about the fraudulent conduct. The whistleblower will receive approximately 19% of the $3.85 million settlement.
- July 06, 2011
- State False Claims Acts
The US Attorney for the Southern District of New York announced the filing and settlement of a false claims act lawsuit against the administrator of the US Department of State’s Fulbright Scholar’s program. The US Attorney alleged that over an 8-year period, the administrator, the Institute of International Education (IIE) did not comply with grant requirements and repeatedly made false claims for payments by inflating its labor costs incurred.
The Tucson Sentinel reports that despite Congressional expansion of the IRS whistleblower program in 2006, the program does not live up to its expectations. In the four years since Congress passed the new program, only one whistleblower has purportedly collected an award—an accountant who collected $4.5 million for reporting a $20 million tax underpayment.
With great anticipation, the SEC adopted its final regulations governing the new whistleblower program under the Dodd-Frank financial reform legislation. Most significantly, the SEC did away with a proposed requirement that whistleblowers first report wrongdoing internally before reporting to the SEC, despite strong opposition from corporate lobbyists. The SEC did provide enhanced remedies for whistleblowers that decide to first report internally by reaffirming that such whistleblowers will still be eligible for an award,