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False Claims Act Archives

United Healthcare accused of jacking up federal quality ratings

Two whistleblowers have accused United Healthcare Services Inc. of intentionally mishandling or concealing hundreds of complaints in order to jack up its quality ratings and get bonus payments it didn't deserve. United Healthcare Services runs the country's largest Medicare Advantage plan, and Medicare paid some $1.4 billion in quality bonuses last year -- compared to only $564 million in 2015.

False Claims Act case allowed for undisclosed body armor defects

A False Claims Act lawsuit has been revived involving the materials supplier Toyobo and the now-defunct Second Chance Body Armor Inc., which produced bulletproof vests that they knew could be defective. The federal General Services Administration brought a fraudulent inducement claim against the companies in 2015, but a prior federal judge had granted summary judgment (a decision without trial) to the manufacturers and then ruled again in their favor in 2016.

Whistleblower receives $9.2 million in False Claims Act case

In a case quite similar to a case we settled, the Pacific Alliance Medical Center, a hospital in Los Angeles, has agreed to settle allegations that it paid illegal kickbacks to doctors and submitted false claims to Medicare and Medicaid. The hospital has agreed to pay $31.9 million to the federal government, which includes $9.2 million for a former manager who blew the whistle. The company will also pay $10 million to the state of California.

New York False Claims Act and tax fraud Qui Tam litigation, P.2

Last time, we mentioned that some states are currently looking at New York's whistleblower statute as a possible model for prosecuting tax fraud. As we noted, there are currently nine states which allow whistleblowers to pursue Qui Tam cases based on tax fraud. Not surprisingly, efforts to expand False Claims Act coverage to tax code violations are not universally supported.

New York False Claims Act and tax fraud Qui Tam litigation

As we've previously written on this blog, whistleblower or Qui Tam litigation is a means for those who have inside information regarding fraud to file a claim on behalf of the government. Qui Tam litigation allows whistleblowers to assist in holding the offending business liable for fraud and to obtain a reward for doing so.

Qui tam plaintiffs have legal protections

One of the greatest legal tools in the arsenal of the federal government is the False Claims Act, which is often referred to as "Lincoln's Law." This law allows the federal government to combat fraud, which is a difficult undertaking for such a large entity that contracts with myriad parties and other entities. It would be impossible for the federal government to do this without whistleblowers -- and that is what the False Claims Act is all about.

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