Thursday, August 16, 2007
DOD Contractor Crane Company Settles False Claims Act Allegations
Connecticut-based manufacturer of valves and marine components, The Crane Company, has agreed to pay the United States $7.5 million to settle False Claims Act allegation.
The lawsuit was originally filed in U.S. District Court in Houston by a former company employee, Walter Klepacz, under the qui tam provisions of the False Claims Act. The lawsuit alleged that the company did not comply with Defense Department Qualified List regulations, which require product suppliers submit to government inspection prior to becoming qualified and being eligible to bid on government contracts. Additionally, the company allegedly used components that were not produced in the United States, violating the Buy America Act.
Click here to read more about The Crane Company’s Qui Tam Settlement.
Posted by Quitam Help Admin on 08/16 at 07:07 PM
Wednesday, August 15, 2007
Chapman University Allegedly Ignores Class Time Requirements, Faces Lawsuit
Three Chapman University professors have brought forth allegations that the University failed to meet classroom hour requirements at its satellite campuses, and now the University is facing damages that could amount to a quarter of a billion dollars.
Former professors Katherine O’Connell, Chris Moyers, and Carlee Durfor complained for years that students met for only a fraction of the time required for degrees, but their complaints were repeatedly ignored by the University’s administration. According to O’Connell, who is also suing for wrongful termination, the program that she administered from 2002 to 2003 met only 50 to 70 percent of the time required by a state licensing board. As a result, O’Connell says, students had below 50 percent pass rates on clinical exams required for licensing.
If the suit is successful, Chapman could be forced to pay back all grants and defaulted student loans received since 1998, estimated between $60 and $90 million. As a False Claims suit, the federal civil court could seek trebel damages.
Click here for more information on the Chapman University Qui Tam Lawsuit.
Posted by Quitam Help Admin on 08/15 at 06:27 AM
Tuesday, August 14, 2007
Iasis Healthcare Faces Medicare Fraud Lawsuit
Iasis Healthcare is facing allegations that it illegally compensated doctors to refer patients to Iasis hospitals and to perform unnecessary medical services to boost profits. The company could be liable to pay millions of dollars as a result of the lawsuit, which was brought under the False Claims Act and had been under seal in federal district court in Phoenix, Arizona until recently.
Jerre Frazier, a former vice president for ethics and compliance for Iasis Healthcare, filed the qui tam lawsuit on behalf of the government. He also had served as the Iasis chief compliance officer and as chairman of its corporate compliance committee.
The lawsuit says Iasis Healthcare paid doctors for referrals in a variety of hidden, unethical ways. The company entered into contracts with doctors for sham medical directorships for which they did little if any work to receive payment. Doctors were also offered below-market rent for office and lab space. Additionally, the lawsuit alleges that unnecessary medical procedures, including interventional cardiology procedures, were performed to help boost corporate profits. The unnecessary medical treatments were performed at a variety of Iasis hospitals in Florida, Texas, and Arizona.
Iasis Healthcare, a privately held company, owns or leases 16 acute-care hospitals and one behavorial health hospital in six states. The company has a total annual net revenue of about $1.8 billion.
Click here to read more about the Iasis Medicare Fraud Lawsuit.
Posted by Quitam Help Admin on 08/14 at 05:22 AM
Friday, August 10, 2007
Teradata Under Justice Dept. Probe
Cash register and banking machine maker NCR Corp. has announced that its software subsidiary, Teradata, is under investigation by the Justice Department for questionable business practices involving federal contracts.
The investigation is related to civil litigation in the U.S. district court that was filed under the qui tam provisions of the False Claims Act. The civil case is being brought against several technology companies, including NCR.
Click here to read more about the NCR/Teradata qui tam probe.
Posted by Quitam Help Admin on 08/10 at 07:48 PM
Tuesday, August 07, 2007
Judge Unseals Katrina Qui Tam Suit
Forbes.com is reporting that the U.S. Department of Justice is determining whether or not it will intervene in an insurance fraud scheme that took place in the aftermath of Hurricane Katrina. The case was filed in April of 2006, where it has been sealed pending the Justice Department’s decision to intervene.
Litigator Richard Scruggs filed the claim on behalf of Cori and Kerri Rigsby, sisters who worked for E.A. Renfroe & Co. Renfroe is an Alabama-based insurance adjusting firm that was contracted by State Farm to assist with adjusting claims following Hurricane Katrina. The sisters claim that State Farm manipulated engineering reports so that claims could be denied. They no longer work for E.A. Renfroe & Co.
Click here to read Michael Kunzelman’s article about the State Farm Katrina Damage Lawsuit.
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Posted by Quitam Help Admin on 08/07 at 10:53 AM