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In the 2018 fiscal year, the U.S. Department of Justice recovered billions of dollars on behalf of the federal government from cases involving the False Claims Act. This law holds both individuals and companies responsible for defrauding and taking money from the federal government. In addition to the government seeking to cover its losses from various types of fraudulent actions, a claimant filing under the False Claims Act, whether from New York or another state, may be able to seek a portion of what is recovered.
Billions recovered by government under the False Claims Act
Whistleblower alerts government to systemic, overcharged shipments
The False Claims Act invites private-citizen whistleblowers to file lawsuits against companies that they believe are engaging in fraud, waste or abuse in government contracting. When these lawsuits are successful, the whistleblower can receive a substantial portion of the money recovered as a reward for their service. Sometimes, the federal government intervenes in these lawsuits, which does not affect the whistleblower's rights but sometimes improves the lawsuit's chances for success.
Drug maker settles illegal charity copay claims for $360 million
As drug prices rise in the U.S., some have expressed concerns that charitable payment of drug copays could be contributing to price inflation. This is because, although most patient assistance groups of this type are charities, pharmaceutical companies routinely donate to the groups.
Vascular Access Centers accused of false billing, kickback scheme
Vascular Access Centers L.P., along with 23 subsidiaries and related corporations, has been accused of Medicare fraud, violating the False Claims Act, and violating the Anti-Kickback Statute and have agreed to pay at least $3,825 million to resolve the allegations. If certain contingencies arise, additional payments up to $18,360,794 could be triggered.
