University of Florida to Pay $19M to Settle Allegations of Grant Fraud

The University of Florida will pay the United States more than $19 million to settle allegations that the university improperly charged the U.S. Department of Health and Human Services (HHS) for salary and administrative costs on hundreds of federal grants, the Department of Justice announced today. The University of Florida receives millions of dollars in grant…

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For-Profit College to Pay $95.5 Million to Settle Claims of Illegal Recruiting

Education Management Corp. (EDMC), the second-largest for-profit education company in the country, will pay the United States $95.5 million to resolve allegations that it violated the False Claims Act by falsely certifying that it was in compliance with Title IV of the Higher Education Act and state statutes. The primary allegation was that EDMC unlawfully recruited…

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More than 450 Hospitals Pay $257M to Resolve Allegations of Unapproved Cardiac Procedures

The Department of Justice announced today that it has reached 70 settlements involving 457 hospitals in 43 states for more than $250 million related to cardiac devices that were implanted in Medicare patients in violation of Medicare’s National Coverage Determination (NCD) requirements.  The NCD provides that devices known as implantable cardiac defibrillators (ICD) generally should…

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Warner Chilcott Pays $125M for Kickback Allegations; Former Pres. Indicted

Warner Chilcott agreed to pay $125 million to settle allegations that the company paid kickbacks to doctors under the guise of medical education events and speaker fees.  The company will also plead guilty to the conduct set forth in the information, which alleges that: Warner Chilcott employees, at the direction of company management, provided payments,…

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Novartis Agrees to Pay $390M to Settle Kickback Allegations

Novartis has agreed to pay $390 million to settle allegations that it gave discounts or rebates to specialty pharmacies to increase prescriptions of its drugs.  Three other companies–BioScrip, Accredo Health Group, and Express Scripts–have already paid a collective $75 million to settle related allegations.  In settling its case, BioScrip had agreed to provide the government with information…

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L-3 to Pay $4.63 Million to Settle Defense Contracting FCA Suit

L-3 Communications Corporation, Vertex Aerospace LLC and L-3 Communications Integrated Systems LP  (“L-3”) have agreed to pay $4.63 million to settle allegations that the companies overcharged the military for the time spent by independent contractors at pre-deployment processing sites.  According to DOJ: L-3 performed rotary aviation maintenance and support services for the U.S. Army in…

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SEC Pays Whistleblower Over $3 Million

The SEC announced that it paid an award of over $3 million to a whistleblower whose tip “helped the SEC crack a complex fraud.”  The SEC wrote: The whistleblower’s specific and detailed information comprehensively laid out the fraudulent scheme which otherwise would have been very difficult for investigators to detect. The whistleblower’s initial tip also…

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DaVita Pays $450 Million to Settle Non-Intervened FCA Suit

DaVita Kidney Care has agreed to pay $450 million to settle a False Claims Act case alleging that the dialysis center overbilled the government for drugs.  According to the whistleblower, DaVita billed the government for Zemplar, Venofer, and Epogen in ways that maximized the amount of wasted product reimbursed by the government.  For certain products, Medicare will…

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Two Labs to Pay $48.5 Million for Referral Fee Kickbacks and Unnecessary Testing

The Department of Justice announced that two cardiovascular disease testing laboratories have agreed to collectively pay $48.5 million to settle False Claims Act allegations.  According to DOJ, Health Diagnostics Laboratory Inc. (HDL) and Singulex Inc. paid kickbacks to physicians for referrals and billed for unnecessary tests. The allegations against HDL and Singulex were brought by…

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