The first False Claims Act decision regarding the “60-day rule” created by the Affordable Care Act (ACA), was recently decided by the United States District Court for the Southern District of New York. The Department of Justice (DOJ) intervened in the False Claims Act (FCA) lawsuit which was pursued by whistleblower…
The first settlement involving a healthcare provider’s failure to investigate credit balances on its books has been reached. The Pediatric Services of America (PSA) has settled with the US government and several US states for $6.88 million to resolve all False Claims Act allegations made against the company. PSA, based…
In a far ranging decision, the Ninth Circuit held that whistleblowers need only meet two requirements to be considered an “original source” under the False Claims Act (FCA). First, the whistleblower must inform the government of the alleged fraud voluntarily. Second, the whistleblower must have “direct and independent knowledge” of…
Education Affiliates (EA) was involved in a lawsuit for violating the False Claims Act (FCA) according to the US Department of Justice (DOJ). Five whistleblowers came forward with information regarding the for-profit education company, stating that EA was submitting false information to the Department of Education to receive federal student…
The Department of Justice (DOJ) has recently resolved a case involving the largest settlement of alleged violations of the Anti-Kickback Statute by a skilled nursing facilities company in the United States. The skilled nursing company, Plaza Health Network, and its former president and executive director have agreed to pay $17…
This week the US Court of Appeals for the Fourth Circuit affirmed a South Carolina District Court judgment against Tuomey Healthcare System. The damages and penalties against Tuomey totaled $237,454,195 as decided in United States ex rel. Drakeford v. Tuomey Health Care System, Inc. A jury had found the defendant liable…
AstraZeneca and Cephalon have both reached settlements with the US Department of Justice (DOJ), totaling $54 million. AstraZeneca has agreed to pay the United States and participating states a total of $46.5 million with interest. Cephalon, which is now owned by Teva, has agreed to pay the United States and…
VMware and Carahsoft Technology Corp. reached a settlement of $75.5 million with the General Services Administration (GSA) on Tuesday, June 30. This settlement resolves allegations made by a former Vice President at VMware that the companies violated the False Claims Act (FCA). The whistleblower alleged that the cloud service providers…
In the largest False Claims Act settlement in which the government did not intervene, DaVita Healthcare Partners has come to an agreement to pay the government $450 million. The false claims lawsuit involved DaVita’s largest division, DaVita Kidney Care. The division was accused of intentionally wasting medicine in order to…
The Sixth Circuit has held that a construction contractor’s violation of the Davis-Bacon Act can also create liability under the False Claims Act (FCA). U.S District Judge Kevin H. Sharp issued a judgment ordering Circle C Construction, LLC to pay the United States a total of $762,894 for violation of…