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False Claims Act Settlements

Since the time of its landmark victory, Goldberg Kohn’s False Claims Act practice has developed a nationwide track record of success for its clients. By carefully crafting complaints, working cooperatively with the government, and litigating effectively against the most powerful law firms in the country, Goldberg Kohn has repeatedly obtained successful settlements for its clients.

Community Health Systems, Inc.

  • Goldberg Kohn represented former employees of Community Health Systems, Inc. (CHS) in a qui tam lawsuit alleging that the company knowingly billed government health care programs for inpatient services that should have been billed as outpatient or observation services.
  • According to the Department of Justice (DOJ), CHS allegedly “engaged in a deliberate corporate-driven scheme to increase inpatient admissions of Medicare, Medicaid and the Department of Defense’s (DOD) TRICARE program beneficiaries” and admitted patients when it was not medically necessary.
  • CHS agreed to pay $98.15 million to resolve these allegations.
  • For more information, see the DOJ’s press release or Goldberg Kohn’s press release.

Shire Pharmaceuticals PLC

  • Three Goldberg Kohn clients, along with another whistleblower, assisted the government with a False Claims Act case against Shire Pharmaceuticals PLC, alleging that the company had made claims to prescribers about the uses and benefits of its drugs without proper supporting data.
  • Specifically, the government, along with the help of the whistleblowers, alleged that Shire violated the False Claims Act by illegally marketing and promoting several drugs, including Adderall XR by promoting Adderall XR for certain uses despite a lack of clinical data to support such claims and overstated the efficacy of Adderall XR, particularly relative to other ADHD drugs. 
  • Shire agreed to pay $56.5 million to resolve the allegations.
  • For more information, see the DOJ’s press release or Goldberg Kohn’s press release.

Omnicare, Inc.; Morris and Philip Esformes 

  • Goldberg Kohn represented a former employee of Total Pharmacy in a qui tam lawsuit alleging that Omnicare's $32 million purchase of Total Pharmacy included a multimillion-dollar kickback to secure long-term pharmacy contracts with more than two dozen nursing homes operated by the Morris and Philip Esformes, who also owned Total Pharmacy.
  • In June 2012, Omnicare agreed to pay $17.2 million to the government to settle its part of the ongoing lawsuit, and the individuals later settled for $5 million.

Rush University Medical Center

  • Goldberg Kohn represented a client in a qui tam lawsuit against Rush University Medical Center, alleging that the hospital submitted false claims to Medicare from 2000 to 2007 by entering into certain leasing arrangements for office space with two individual physicians and three physician practice groups in violation of the Stark Law.
  • Rush University Medical Center agreed to settled the case for $1.5 million in March 2010.
  • For more information, see the DOJ’s press release.

Attorneys at Law

55 East Monroe Street
Suite 3300
Chicago, Illinois 60603-5792
Tel: 312-863-7222
Fax: 312.332.2196

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