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False Claims Act Archives

Vitas Healthcare to pay $75 million in False Claims Act case

Vitas Healthcare and its parent company Chemed Corporation have reached a record settlement in a federal False Claims Act case. Vitas and Chemed admit no wrongdoing but have agreed to settle the case for $75 million.

Visiting Nurse Service of NY must face False Claims Act lawsuit

Visiting Nurse Service of New York, which claims to be the largest nonprofit home health agency in the U.S., will have to face a False Claims Act lawsuit, a federal judge has ruled. The company is accused of defrauding Medicare and Medicaid and also of failing to provide the care prescribed by patients' doctors.

Whistleblower says automakers used non-work visas to bilk the US

A former Tesla worker has filed a False Claims Act lawsuit claiming that Tesla, BMW, Volkswagen, Mercedes-Benz and other companies conspired to defraud the U.S. of tax revenue by bringing in foreign workers on non-work visas but having them work anyway -- at wages far below market levels.

Pre-recession whistleblower suit revived against Wells Fargo

In light of a 2016 Supreme Court ruling, the Second Circuit Court of Appeals has ordered a federal court to reconsider the case of two men who tried to blow the whistle on actions by Wells Fargo and two mortgage lenders before the 2008 financial crisis.

Whistleblower to receive over $2 million in False Claims Act case

A former employee of a mobile ophthalmic company blew the whistle on kickbacks being paid to potential doctor-clients. Sightpath Medical Inc., TLC Vision Corporation and their former CEO have agreed to pay $12 million to resolve the allegations, and the whistleblower will receive 19.5 percent of that settlement -- or $2,340,000.  The U.S. Government also intervened in an underlying lawsuit against the Cameron Ehlen Group, d/b/a Precision Lens, and its owner.

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.

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