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Qui Tam Lawsuits

What Is A Qui Tam Lawsuit?

The term qui tam originates from a Latin phrase that means "[he] who sues in this matter for the king as well as for himself." As such, a qui tam lawsuit is a type of civil lawsuit whereby a private individual, or a relator, with knowledge of fraudulent activity, assists in filing a case on behalf of the government. Qui tam lawsuits are filed under the False Claim Act and, in the event of a successful case, a relator receives as a reward a part of the funds recovered by the government. More

Famous Whistleblowers and Their Impact on America

Whistleblowers have played a vital role in American history, bringing to light abuses and scandals in fields as diverse as pharmaceuticals and the military. Law enforcement agencies and government departments depend on whistleblowers to alert them to corporate and government corruption. That doesn’t always mean these entities have welcomed whistleblowers, however, especially when those people are highlighting problems within their organizations.

Fortunately, federal and state legislatures have enacted protections for whistleblowers, understanding the fundamental role they play in a democracy, and whistleblowers continue to come forward with valuable information about government and corporate misdeeds. Let's examine some of the most famous whistleblower cases and the role these courageous men and women have played in our nation's history. More

New Formal Guidelines on "Cooperation Credit" for False Claims Act Defendants

The Department of Justice released formal guidelines on May 7, 2019 allowing False Claims Act defendants to receive "credit" by taking steps to cooperate with an ongoing government investigation. The goal of this guidance is to incentivize companies to provide meaningful assistance throughout a DOJ investigation, including voluntarily disclosing misconduct that may not be within the scope of any pending investigation. Although the impact of the formal guidance on False Claims Act cases is still unclear, there is some possibility that cases will resolve more quickly due to increased cooperation by defendants. More

Failing to Meet Cybersecurity Requirements May Expose Company to False Claims Act Liability

Recent developments in a case heard by the U.S. District Court for the Eastern District of California shine a spotlight on the importance of cybersecurity measures for government contractors. The district court denied in part a motion to dismiss from defendants Aerojet Rocketdyne Holdings, Inc. and Aerojet Rocketdyne, Inc. (collectively, "Aerojet"), holding that the relator "plausibly pled that defendants’ alleged failure to fully disclose its noncompliance [with cybersecurity requirements] was material to the government’s decision to enter into and pay on the relevant contracts." [1] More

Carolina Physical Therapy and Sports Medicine, Inc. Settles False Billing Allegations and Agrees to Pay $790,000

US Attorney Sherri A. Lydon announced on May 9 that the United States Attorney's Office for the District of South Carolina has resolved claims of health care fraud with Carolina Physical Therapy and Sports Medicine, Inc. ("Carolina PT"). Carolina PT had nine physical therapy practices in South Carolina, in Columbia, Irmo, Lexington, Sumter, and Mount Pleasant respectively. More

Pharmaceutical Executive Found Guilty of Racketeering Conspiracy in Landmark Bribery Case Involving False Claims

On May 2, Insys Therapeutics ("Insys") founder, John Kapoor, and four co-defendants were found guilty of a racketeering conspiracy for running a nationwide bribery scheme involving the over-prescription of opioids. Kapoor is among the highest-ranking pharmaceutical executives to be held responsible and face trial for their part in the opioid crisis.  The charges carry up to 20 years in prison. More

Government Takes a Hard Line on Fraudulent Donations to Patient Assistance Programs

Last month, the Department of Justice ("DOJ") announced a settlement with two pharmaceutical companies – Astellas Pharma US, Inc. ("Astellas"), and Amgen Inc. ("Amgen") – resolving allegations that their "donations" to patient assistance programs violated the False Claims Act. The two companies agreed to pay a total of $124.75 million, and both entered into five-year corporate integrity agreements with the Office of Inspector General as part of their respective settlements. United States Attorney Andrew E. Lelling said that according to the allegations, the companies illegally subsidized the high costs of their own drugs at the expense of American taxpayers, and "[w]e will keep pursuing these cases until pharmaceutical companies stop engaging in this kind of behavior.” Multiple settlements related to similar investigations have already brought in hundreds of millions of dollars in only a few years' time. More

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Pharmaceutical Manufacturer US WorldMeds LLC Pays $17.5 Million to Settle False Claims Act Allegations

Pharmaceutical manufacturer US WorldMeds LLC (USWM), headquartered in Louisville, Kentucky, has agreed to pay $17.5 million to settle allegations that it violated the False Claims Act by paying kickbacks to both patients and physicians to induce prescriptions of its drugs Apokyn and Myobloc.  The Department of Justice (DOJ) announced the settlement on April 30, 2019. More

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Can I Be Compensated For Being a Whistleblower?

One of the most common questions people have when they are considering whether to file a whistleblower lawsuit is whether any financial award is available to whistleblowers. In other words, can whistleblowers get paid? More

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Sutter Health Settles False Claims Act Allegations for $30 Million

Sutter Health, based in Sacramento, California, agreed to pay $30 million to settle allegations that the health system submitted inflated diagnosis codes to the Center for Medicaid Services (CMS) for Medicare Advantage beneficiaries.  The Department of Justice (DOJ) announced this in a press release on April 12, 2019.    More

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