Friday, January 23, 2009

ACLU Challenges Whistleblower Law

The American Civil Liberties Union is challenging the constitutionality of a law that requires whistleblowers to file their lawsuits in secret when alleging war profiteering or other contract fraud.  The ACLU say the requirement violates the freedom-of-speech protections and are keeping war fraud complaints hidden from public scrutiny. The lawsuit alleges the Justice Department has used the law as a way to keep allegations hidden for years.

Click here to read the full article, “ACLU challenges secrecy of US whistleblower law"

Hospice Provider Pays U.S. $24.7 Million for Alleged Reimbursement Fraud

SouthernCare Inc. has agreed to pay the U.S. $24.7 million to settle allegations that the hospice facility submitted false claims to the government, attempting to gain reimbursement for care it had given. Hospice care is designated to be provided for those who have a terminal illness with a prognosis of six months or less to live. The allegations assert SouthernCare Inc. was providing for those who were not eligible for such care. The settlement is a result of two qui tam suits filed by two former SouthernCare employees.

Click here to read more about the $24.7 million settlement between SouthernCare Inc. and the U.S. government.

Thursday, January 15, 2009

Pharma, Eli Lilly, Pleads Guilty to Qui Tam Lawsuit, Agrees to Pay $1.415 Billion

Pharmaceutical giant, Eli Lilly and Company, plead guilty to promoting its drug Zyprexa for “off-label” uses. The plea resulted in the company paying $515 million in criminal fines. This is the largest payment made from an individual corporate criminal fine in history. In addition to the large payout, Eli Lilly signed a civil settlement admitting that by marketing the drug for unapproved use, it caused false claims for payment and negatively affected insurance programs like Medicaid. The civil settlement also includes an $800 million payout to resolve the original qui tam lawsuits brought against the company.

Although the drug was approved to treat manifestations of psychotic disorders, Eli Lilly taught their sales force to convince doctors to use the drug for treating dementia, Alzheimer’s dementia, depression and others disorders.

Click here to read the full news release by the DoJ on Eli Lilly and the agreement to pay $1.415 billion

Wednesday, January 07, 2009

DOJ Settles $15.5 Million Qui Tam Lawsuit with Advertising Agency

A Chicago advertising firm agreed to pay the U.S. $15.5 million to settle a qui tam lawsuit alleging the company “improperly” billed the government for work on the “Army of One” Web site and recruitment advertising. The Leo Burnett Company will make a cash payment and resolve the remaining balance in work performed but not billed. The case was begun by two whistleblowers, Greg Hamilton and Michele Casey; both were former Leo Burnett employees. The whistleblowers will receive a portion of the recovery, over $2.5 million, for their involvement in the case.

Click here to read the official statement released by the Department of Justice on the $15.5 million settlement for over billing on an army contract.

Tuesday, January 06, 2009

7 NY Hospitals Accused of Operating $50 million Medicaid Scam

Seven New York hospitals are accused of operating a $50 million Medicaid scam by making false claims for ‘patients’ going through drug-treatment programs. Some of the patients were not actual addicts and the hospitals are being accused of luring street people in with cigarettes and beer. One of the hospitals, Our Lady of Mercy entered $4.5 million as a settlement with prosecutors

Click here to read more about the seven New York hospitals involved in the $50 million Medicaid scam.

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