SEC to Company: You Can’t Force Whistleblowers to Give Up Awards

The SEC reached an agreement today with a company whose severance agreements included a provision that waived employees’ rights to any whistleblower awards based on their reporting to the SEC or other federal agencies.  The company, Bluelinx Holdings Inc., has agreed to pay a $265,000 penalty, amend all of its severance agreements, and attempt to notify…

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J&J Subsidiary to Pay $18 Million for Marketing Device Off-Label

Johnson & Johnson subsidiary Acclarent Inc. has agreed to pay $18 million to resolve a False Claims Act case alleging that the company illegally marketed its device, the Relieva Stratus MicroFlow Spacer, for unapproved uses.  The FDA had only approved the use of the device, which holds the nasal passages open after surgery, with saline….

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Evercare Hospice to Pay $18 Million for FCA Claims

Evercare Hospice and Palliative Care has agreed to pay $18 million to settle a False Claims Act suit alleging that the company enrolled patients in hospice care that were not terminally ill.  When patients enroll in hospice care, they forgo treatment for their medical conditions and instead receive care designed to make them comfortable in their…

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Two Companies Pay $67 Million for Tarceva FCA Claims

Genentech Inc. and OSI Pharmaceuticals LLC have agreed to pay $67 million to resolve allegations that they overstated the effectiveness of cancer drug Tarceva for certain conditions.  According to the DOJ press release: The settlement resolves allegations that, between January 2006 and December 2011,  Genentech and OSI Pharmaceuticals made misleading representations to physicians and other…

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M&T Bank Pays $64 Million to Settle Mortgage FCA Suit

M&T Bank agreed to pay $64 million to settle allegations that it issued government-backed home loans that didn’t meet Federal Housing Administration standards. As part of the settlement, M&T Bank admitted to the following facts: Between Jan. 1, 2006, and Dec. 31, 2011, it certified for FHA insurance mortgage loans that did not meet HUD…

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Another Mortgage Lender Pays Out Under the False Claims Act

The United States Attorney in New Jersey announced today that Freedom Mortgage Corp., located in Mt. Laurel, N.J., has agreed to pay $113 million to resolve allegations that it violated the False Claims Act f by originating and underwriting single family mortgage loans insured by the Federal Housing Administration (FHA) that did not comply with certain…

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Groundbreaking Tax Qui Tam Whistleblower Case Settles in New York

New York State leads the way with another qui tam tax whistleblower settlement under its so-called “False Claims Act on Steroids” that notably – and uniquely – expressly allows for whistleblowers to report and obtain a reward for reporting large-scale tax frauds. This case involved a violation of complicated tax law provisions that allow taxpayers…

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Pfizer Will Pay a Record $784M for Alleged Medicaid Rebate Fraud

Three weeks before a trial was scheduled to begin in federal court in Boston, Pfizer has agreed to pay more than $784 million to settle allegations that it overcharged state Medicaid programs for the Protonix heartburn drug. This 12 year old case, which was filed by two separate whistleblowers under the qui tam provisions of…

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Tampa Radiology Center Accused of Lax Physician Supervision to Pay $8.7M

The United States Attorney’s Office for the Middle District of Florida announced today that Rose Radiology Centers Inc., a provider of radiology services with offices in multiple locations in the greater Tampa area, has agreed to pay $8.71 million to the government to resolve allegations that it violated the False Claims Act by billing federal…

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Largest Nursing Home Therapy Provider in the US to Pay $125 Million to Resolve Whistleblower Case

Contract nursing home therapy providers Kindred/RehabCare will pay $125 million to resolve a False Claims Act lawsuit alleging that they caused skilled nursing facilities to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary and skilled, or that never occurred, the Department of Justice announced today. RehabCare is the largest provider…

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