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Category Archives: False Claims Act
Chief Judge Goldberg Denies Appeal in Caremark Whistleblower Suit
On July 30, 2024, Chief U.S. District Judge Mitchell S. Goldberg of the Eastern District of Pennsylvania denied a request to appeal his interpretation of the Centers for Medicare and Medicaid Services' regulations from CVS Caremark Corp. ("Defendant" or "Caremark" or the "Company") in a qui tam lawsuit against the Company for falsely reporting prescription drug prices to the government in violation of the False Claims Act ("FCA"), 31 U.S.C.…
How Does the False Claims Act Help Combat Government Fraud?
The False Claims Act (FCA) is a legal measure designed to protect the integrity of government expenditures. Enacted during the American Civil War in 1863, its primary purpose was to curb defense contractor fraud, an objective that has since broadened to encompass a range of fraudulent activities against the federal government. At Miller Shah LLP, we continue that commitment to justice by supporting whistleblowers who bring fraudulent activities to light…
Booz Allen Settles False Claims Act Lawsuit for $377 Million
On July 21, 2023, the Department of Justice (“DOJ”) announced that Booz Allen Hamilton Holding Corporation (“Booz Allen” or the “Company”), a Virginia-based provider of data analytics, digital solutions, and consulting services, has agreed to pay $377.45 million to resolve alleged violations of the False Claims Act, 31 U.S.C. §§ 3729–3733 (“FCA”). The settlement, one of the biggest procurement fraud settlements in DOJ history, specifically resolves allegations that Booz Allen…
Paycheck Protection Program (PPP) Vendor Pays Up
On September 13, 2022, the Department of Justice (“DOJ”) announced its first settlement with a Paycheck Protection Program (“PPP”) lender pursuant to the False Claims Act (“FCA”). The agreement resolves allegations that Prosperity Bank (“Prosperity” or the “Bank”), a regional bank throughout Texas and Oklahoma, improperly processed a PPP loan and secured a processing fee to which it was not entitled. Prosperity agreed to settle the claims for $18,000, and…
Federal Physician Kickbacks Claims Survive Abbott Labs Motion to Dismiss
On August 18, 2022, a District Judge in the United States District Court for the Southern District of California granted in part and denied in part the motion to dismiss the False Claims Act lawsuit against Abbott Laboratories, Inc. a/k/a Abbott Laboratories, Abbott Cardiovascular Systems Inc., and Abbott Vascular Inc., (collectively, “Abbott” or the “Company”), sustaining the federal claims but dismissing the state claims in the action. The False Claims Act,…
Northern Arizona Healthcare, Flagstaff Medical Center, and Health First Foundation – Northern Arizona Settle FCA Action for $4.5 Million
On August 29, 2022, Nathan C. Zipperian of Miller Shah LLP (www.millershah.com), counsel for Plaintiff-Relator, Gregory Kuzma (“Relator”) announced Northern Arizona Healthcare (“NAHC”), Flagstaff Medical Center (“FMC”), and Health First Foundation - Northern Arizona (formerly Northern Arizona Healthcare Foundation) (“NAHF”) (collectively, “Defendants”) agreed to pay a total of $4.5 million to settle a lawsuit alleging that a 2017 Medicaid Disproportionate Share Hospital (“DSH”) payment of approximately $4.775 million to FMC…
Biogen to Pay $900 Million to Settle Sham Speaker Program Allegations
On July 20, 2022, Biogen, Inc. (“Biogen” or the “Company”), formerly known as Biogen Idec, Inc., agreed to pay $900 million to resolve allegations that the Company violated the federal Anti-Kickback Statute (“AKS”) and False Claims Act (“FCA”) by paying physicians to prescribe its Multiple Sclerosis (“MS”) drugs. After a decade of litigation, the parties agreed to settle just one week before trial was set to begin. The FCA allows…
SCOTUS To Review DOJ Authority In FCA Whistleblower Lawsuit
On June 21, 2022, the Supreme Court of the United States granted certiorari in Polansky v. Executive Health Resources, a False Claims Act (“FCA”) lawsuit appealed to the Third Circuit after the District Court dismissed at the request of the government. The Supreme Court’s decision is anticipated to resolve a split among the circuit courts of appeal regarding the legal standard applicable when the Department of Justice (“DOJ”) moves to…
Arizona Court Rejects Defendants’ Bid for Summary Judgment in Summit Center Kickbacks Case
On June 15, 2022, a Federal Judge in the United States District Court for the District of Arizona ruled that a lawsuit concerning illegal kickbacks to physicians was fit to proceed, denying Defendants’ attempt to defeat the legal action. The whistleblower lawsuit alleges that Northern Arizona Healthcare Corporation (“NAHC”), Northern Arizona Orthopedic Surgery Center, LLC, and Flagstaff Medical Center, Inc. (together, “Defendants”), which collectively operate healthcare facilities throughout northern Arizona,…
Novartis Pays Over $642 Million to Settle FCA Allegations
On July 1, 2020, the Department of Justice (“DOJ”) announced that Novartis Pharmaceutical Corporation (“Novartis”), a New Jersey-based pharmaceutical company, agreed to pay over $642 million in separate to resolve alleged violation of the False Claims Act (“FCA”), 31 U.S.C. §§ 3729–3733. The settlement resolves allegations that Novartis made improperly payments to Medicare patients and prescribing physicians to promote Novartis's drugs, Gilenya and Afinitor. The FCA allows private citizens (known…
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