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False Claims Act
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Mallinckrodt Must Pay $234 MIllion to Resolve False Claims Act Lawsuit Brought by Former Employee

The federal government, in conjunction with individual states, the District of Columbia and Puerto Rico, recently settled a False Claims Act lawsuit against Mallinckrodt PLC, a pharmaceuticals company. The lawsuit alleged Mallinckrodt regularly and knowingly underpaid Medicaid rebates for one of its products, Acthar. As a result of the action, the company must pay nearly Read More

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Orthopedic Surgeon Must Pay $343,000 to Settle Allegations of False Claims Act Violations

Dr. Mark Stephen Wilson, an orthopedic surgeon based in Oklahoma, will pay the federal government nearly $343,000 to resolve allegations of False Claims Act violations. According to the Department of Justice, Wilson accepted illegal kickback payments from Brookhaven Specialty Pharmacy LLC. Case background DOJ attorneys stated Wilson knowingly accepted payments from Brookhaven Specialty Pharmacy from Read More

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FCA Whistleblowers Received Lowest Total Awards in More than a Decade

The federal whistleblower programs at the Securities and Exchange Commission (SEC) and Commodities and Futures Trading Commission (CFTC) have been the subject of quite a bit of praise for their effectiveness, and it’s easy to see why; the agencies’ programs have taken off in a big way over the last several years, and both achieved Read More

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Hayat Pharmacy to Settle False Claims Act Case for $2 Million

The United States Department of Justice (DOJ) recently announced a settlement with Milwaukee-based chain Hayat Pharmacy for $2.05 over allegations the pharmacy made false claims to Medicaid and Medicare for prescription medications. The money from the settlement will be divided between the Wisconsin state government and the federal government. Wisconsin will receive approximately 34 percent Read More

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Sixth Circuit Provides Clarification on False Claims Act Whistleblower Statute of Limitations

On January 10, 2022, the Sixth Circuit ruled the statute of limitations period for False Claims Act whistleblower retaliation cases begins when the whistleblower is first notified of the adverse retaliatory action. This clarification came in the ruling of El-Khalil v. Oakwood Healthcare, Inc. Case background The plaintiff in the case, El-Khalil, witnessed employees of Read More

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Hospital Pays More Than $3 Million in Whistleblower Claim Settlement

John Peter Smith Hospital recently agreed to pay $3.3 million to settle allegations of False Claims Act violations. The hospital was alleged to have upcoded claims submitted to healthcare programs to receive more money in reimbursements. Case background The lawsuit that prompted the FCA action originally was filed in 2018 by the former Director of Read More

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Navistar Defense Settles False Claims Act Allegations for $50 Million

Navistar Defense LLC, a company based in Illinois that manufactures military vehicles, recently agreed to pay $50 million to settle a False Claims Act case alleging it inflated prices in an agreement with the U.S. Marine Corps for suspension systems for armored vehicles. Case background The inflated prices came in the midst of a contract Read More

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6th Circuit Court Rules FCA Whistleblower Protections Include Post-Employment Retaliation

The Sixth Circuit Court ruled on March 31 that the whistleblower protection provisions of the False Claims Act (FCA) include protections for former employees who are subject to retaliation from employers after their employment ceases. The case, United States ex rel. Felten v. William Beaumont Hospital, centered on a plaintiff who worked as a doctor Read More

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SavaSeniorcare LLC Pays $11.2 Million in False Claims Act Case Settlement

SavaSeniorCare LLC recently agreed to pay $11.2 million and possible additional amounts to resolve allegations the company (referred to as Sava) violated the False Claims Act by causing skilled nursing facilities to bill Medicare for unreasonable rehab services, as well as allegations that the company billed Medicare and Medicaid for “grossly substandard” nursing care. Case Read More

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Whistleblower Information Leads to Recovery of $14.1 Million via False Claims Act Cases

In April and May, the U.S. Department of Justice recovered approximately $14.1 million in three False Claims Act case settlements. Each case was initiated by whistleblowers via the legislation’s qui tam provisions, meaning those whistleblowers were eligible to receive between 15 and 30 percent of the recoveries. Case background There were three notable settlements included Read More

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