The Justice Department and six U.S. states have joined a whistleblower's lawsuit against Insys Therapeutics, Inc. In the lawsuit, the drug maker is accused of trying to make more profit on Subsys, a spray form of the opioid fentanyl, by paying kickbacks to induce...
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Year: 2018
DOJ awards $1,645,600 in case of false billings for oxygen
Respiratory equipment supplier Rotech Healthcare, Inc., has agreed to settle False Claims Act Allegations for $9.68 million. Moreover, as part of the settlement agreement, the company admits that it knowingly billed Medicare for portable oxygen tanks (contents) that...
When a noncompete waiver goes too far
One basic principle of the American free market system is that workers have the opportunity for advancement. If that opportunity does not come at your current job, a competitor might see your experience and hire you at a better salary. It is a cornerstone of the...
Whistleblower awarded $3.3 million in major False Claims Act case
When Medicare patients could reasonably be treated on an outpatient basis but are admitted for inpatient care, the result is more expense for the government with no reason to expect a better outcome. Furthermore, patient admitting decisions should always be made for...
Whistleblower to receive $1.1 million in Lance Armstrong case
In 2013, cyclist Lance Armstrong admitted to using banned substances to win his record seven Tour de France titles between 1999 and 2005. In 2012, an investigation by the United States Anti-Doping Agency found that Armstrong and a number of his teammates had used the...
SEC issues $2.2 mln whistleblower award under ‘safe harbor’ rule
Under the Securities and Exchange Commission's "safe harbor" rule, securities law whistleblowers can receive awards even if they submit their information to another agency, as long as they submit it to the SEC within 120 days. When they do so, the SEC will treat the...
Takata whistleblowers to get $1.7 million from bankruptcy fund
The Motor Vehicle Safety Whistleblower Act may not be completely up to speed, but three former Takata employees will still get their awards. They blew the whistle on the auto parts manufacturer in the largest recall in automotive history. The recall involves faulty...
DOJ: Alere Inc. knowingly sold unreliable diagnostic devices
A former Alere Inc. employee who blew the whistle on the medical device manufacturer will receive approximately $5.6 million as a reward. The former senior quality control analyst exposed millions of dollars in false claims against Medicare, Medicaid and other federal...
SEC: 3 Whistleblowers receive record total rewards of $83 million
The Securities and Exchange Commission has just announced three record-setting rewards for whistleblowers under the Dodd-Frank Act. Two of the whistleblowers will share an award of nearly $50 million, while a third will receive over $33 million. The SEC says that the...
Trucking company fraudulently misused federal gas credit cards
Virginia-based Beam Bros. Trucking Inc. and its principles have agreed to settle a federal False Claims Act case for $1,025,000. According to the Justice Department, Beam Bros. entered into U.S. Postal Service contracts to transport mail. The USPS enters into such...