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…

MORE

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….

MORE

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…

MORE

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…

MORE

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…

MORE

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…

MORE