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Bakersfield, CA Out of JM Eagle Qui Tam Lawsuit

Posted on July 26th, 2011 No Comments

A federal judge has dismissed the City of Bakersfield, California from a qui tam lawsuit filed against plastic pipe manufacturer, JM Eagle.

According to court documents, U.S. District Judge George H. Wu granted a dismissal motion filed by the Office of the City Attorney to have its name removed from the qui tam lawsuit. The lawsuit accuses JM Eagle of knowingly selling faulty pipe to government customers. In his decision granting the dismissal motion filed by the Office of the City Attorney for the City of Bakersfield, Judge Wu wrote that the city was reassured by the fact that whatever JM Eagle pipe had been used in the city was covered by a retroactive 50-year warranty the company extended to its customers last year.

The qui tam lawsuit was originally filed by John Hendrix, a former JM Eagle employee. Hendrix claimed the company knowingly sold government entities plastic pipes which it knew were faulty and did not meet industry standards. The company has counter-sued Hendrix, claiming he was the architect of a kickback scheme to defraud JM Eagle. The company has a sworn affidavit confirming that he offered to inflate a claim in return for money to be sent directly to his home.

If you need assistance with a whistleblower lawsuit dealing with government construction fraud, please contact the Whistleblower lawyers of Tycko & Zavareei, LLP, by calling 202-973-0900.

Qui Tam Lawsuit Going Ahead Against Family HealthCare

Posted on July 20th, 2011 No Comments

A qui tam lawsuit filed against Family HealthCare Network is proceeding after a federal court judge rejected a motion to dismiss the suit.

The qui tam lawsuit was filed by Sharmon Wood, a former employee of Family HealthCare Network. According to court documents, Wood worked as a grants management coordinator for the company from November 2002 until March 2004. The lawsuit claims that CEO Harry Foster, Vice President of Finance Tony Weber, and several other unnamed defendants “submitted applications for two competitive federal grants, both of which were subsequently awarded to FHCN.”

The complaint says that, in each application, the “defendants submitted detailed budget and narrative information setting forth its plan to hire additional staff and extend the operating hours at two FHCN clinics.” Wood claims, however, the defendants never intended the grant funds to be used for their stated purpose, instead applying the funds to FHCN’s ongoing operating expenses.”

The lawsuit alleges violation of the federal False Claims Act.

If you have information regarding government grant fraud, please contact a Qui Tam Attorney of Tycko & Zavareei, LLP, by calling 202-973-0900.

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PRIDE Industries to Pay $400K to Settle Qui Tam Lawsuit

Posted on July 12th, 2011 No Comments

PRIDE Industries has agreed to pay $400,000 to the federal government to resolve a qui tam lawsuit.

According to the whistleblower lawsuit, PRIDE, one of the nation’s largest employers of disabled people, knowingly submitted false claims relating to a maintenance contract at the Fort Bliss Army Base in El Paso, Texas. The contract is part of the Ability One Program, which procures contracts for goods and services that provided employment to disabled people. Under the program, contractors must ensure that 75 percent of all direct labor hours are performed by severely disabled employees.

According to officials with the Justice Department, PRIDE, between 2001 and 2010, employed a large number of temporary, non-disabled workers as part of its maintenance staff, but did not count on their hours as part of its overall ratio, meaning that PRIDE reported false ratio numbers to the National Industries of the Severely Handicapped, which oversees AbilityOne. The department also said PRIDE overcharged the Army by adding costs not allowed under the contract and by charging too much for labor.

PRIDE spokeswoman Audrey Farrington said the company cooperated with the government’s investigation. She added that the company did not admit any liability or guilt as part of the settlement.

If you have information regarding government grant fraud, please contact a Qui Tam Lawyer of Tycko & Zavareei, LLP, by calling 202-973-0900.

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UCB to Pay $34M in Qui Tam Settlement

Posted on June 22nd, 2011 No Comments

Pharmaceutical manufacturer UCB inc. has agreed to pay more than $34 million to settle a qui tam lawsuit.

According to officials with the United States Department of Justice, the qui tam lawsuit was brought by whistleblowers alleging that UCB violated the False Claims Act in its marketing of the anti-epileptic prescription drug Keppra. The drug is typically used to treat partial onset seizures in adults and children over four.

A government investigation, however, alleged that from January 1 2003 through March 31, 2005, the pharmaceutical company promoted the sale and use of Keppra for headaches, migraines, pain, bipolar, mood disorders, and anxiety. None of those uses were approved by the United States Food and Drug Administration and were therefore not eligible for reimbursement by state Medicaid programs.

Under the settlement, UCB will pay $8 million in fines and $25 million to settle civil claims.

If you have information on state and local goverment fraud, please contact the Government Contract Fraud Lawyers of Tycko & Zavareei LLP by calling 202-973-0900.

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DOJ to Join KBR Qui Tam Lawsuit

Posted on February 23rd, 2011 No Comments

The U.S. government said Wednesday it will intervene in a qui tam lawsuit filed against Kellogg Brown and Root, which claims the Army contractor defrauded American troops by submitting false claims.

According to the U.S. Department of Justice, KBR provided support services to troops in Iraq, Kuwait, and Afghanistan under LogCAP III, the third generation of the U.S. Army’s Logistics Civil Augmentation Program. The LogCAP program, which began in 1988, allows the U.S. Army to use private contractors for logistical support, food service, transportation, laundry service, recreation, and to build and run base camps. KBR received its first LogCAP contract in 1992.

Former KBR employee-turned-whistleblower James A. Brady III filed a qui tam lawsuit against the Houston-based company in 2007, which claimed the company had violated the False Claims Act because it was unable to account for materials that were billed as part of an operations and maintenance subcontract with a Turkish company, Yukel-Reysas.

The False Claims Act allows the government to recover three times its damages, plus civil penalties. The qui tam provisions of the law entitle a whistleblower, Brady, to as much as 25 percent of any funds recovered from the lawsuit.

Assistant attorney general for the Justice Department’s civil division, Tony West, announced the government’s intervening at a press conference, Wednesday, saying: “As we’ve done today, the Justice Department will take action against those whom we believe charge the taxpayers for goods and services that were not provided to American troops.”

If you have information of fraud against the government, please contact a Qui Tam Lawyer of Tycko & Zavareei, LLP, by calling 202-973-0900.

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Delaware Announces Support of JM Eagle Qui Tam Lawsuit

Posted on October 12th, 2010 No Comments

The Delaware Attorney General announced support for the whistleblower lawsuit filed against JM Eagle, which alleges the manufacturer knowingly supplied inferior pipe for water and sewer systems.

The state of Delaware filed notice Friday with the federal court in Los Angeles that it was withdrawing its notice of intervention, but “would like the [whistleblower] to proceed with the action on its behalf.” The Attorney General explained that his office would not actively participate in the lawsuit because they “simply do not have the resources to litigate this case.”

The states of Nevada, Tennessee, Virginia and 47 municipalities and water districts in California have joined the qui tam lawsuit to recover damages caused by the alleged fraud. The federal government and other states have decided not to join the lawsuit, but reserve their rights to join the case at a later time.

Eric R. Havian, an attorney representing the whistleblower, said he is pleased Delaware believes his team can adequately represent its interests. “While we certainly would have welcomed Delaware’s active participation in the case, we have enough resources to pursue their claims, as they have asked us to do.” Havian said.

If you are a whistleblower and would like more information on Qui Tam lawsuits, please contact the Qui Tam Attorneys of Tycko & Zavareei, LLP, by calling 202-973-0900.

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Whistleblowers Share of Botox Qui Tam Settlement $37.8M

Posted on September 30th, 2010 No Comments

Five Qui Tam whistleblowers in Indiana are in line for a combined $37.8 million as part of a settlement in a lawsuit filed against the makers of Botox Therapeutic.

The lawsuit alleged promotion by Allergan Inc. of its Botox Therapeutic product for unapproved medical uses, a practice which resulted in a combined $600 million in civil and criminal penalties. The attorney general for the state of Indiana announced that the state will receive approximately $636,000 from the settlement. Allergan Inc. and Allergan USA inc. agreed to pay state governments and the federal government a combined $225 million civil settlement to compensate Medicaid and Medicare.

The lawsuit was filed by five private plaintiffs who claimed off-label marketing of Botox Therapeutic for treatment of headaches, pain, and overactive bladder occurred from 2001 through 2008 and resulted in over-utilization of the product for non-covered, and medically unnecessary uses.

If you are a whistleblower and would like more information on Qui Tam lawsuits, please contact the Qui Tam Attorneys of Tycko & Zavareei, LLP, by calling 202-973-0900.

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DOJ Makes First Statement After Joining Oracle Whistleblower Lawsuit

Posted on July 30th, 2010 No Comments

The Department of Justice has posted the first press release since joining a whistleblower lawsuit against Oracle.

The Department of Justice filed a complaint against Oracle under the False Claims Act on July 29 alleging the company defrauded the government on a General Services Administration software contract that was in effect from 1998 to 2006. The Justice Department claims that Oracle overcharged GSA which cost hundreds of million dollars in sales. The software company was required under contract to provide the same markdowns to government that it does commercial customers.

“We take seriously allegations that a government contractor has dealt dishonestly with the United States,” said assistant attorney general for the Civil Division of the Department of Justice Tony West. “When contractors misrepresent their business practices to the government, taxpayers suffer.”

If you have witnessed fraud against the government, you may be able to file a Qui Tam lawsuit against that company. These lawsuits return millions of taxpayer dollars every year. Contact the Qui Tam Lawyers of Tycko & Zavareei, LLP, by calling 202-973-0900 today.

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Northrop to Pay $12.5M to Settle Whistleblower Claims

Posted on June 25th, 2010 No Comments

Nothrop Grumman Corporation, the Pentagon’s third largest supplier, has agreed to pay $12.5 million to the United States government to settle claims that it failed to properly test commercial parts it supplied for navigation in warplanes, submarines and space equipment.

The Justice Department, spurred by a Northrop quality assurance manager turned whistleblower, the government alleged Northrop’s Navigation Systems business unit failed to make sure the electronics would work at the temperature extremes required for military and space uses, according to a statement released Wednesday. The department said Northrop’s misconduct affected the U.S. Navy, Army, Air Force, Defense Logistics Agency, National Aeronautics and Space Administration, Coast Guard, and the Forest Service.

The settlement resolved claims made in a qui tam lawsuit filed in May 2006 against Northrop in the United States District Court for the Central District of California by Allen Davis. Davis was a quality assurance manager at Northrop’s Navigation Systems Division facility in Salt Lake City, Utah. He alleged that Northrop failed to comply with testing requirements laid out in a November 1998 protocol for the use of commercial parts in military systems. After an investigation, the United States alleged the failures to test continued from November 1998 until February 2007.

Davis sill receive $2,375,000 of the settlement under the whistleblower provisions of the False Claims Act.

For help with a Qui Tam claim against a government contractor, contact an experienced Qui Tam lawyer from Tycko & Zavareei, LLP today at 202-973-0900 for a free initial consultation.

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Justice Department backs suit against military contracts

Posted on June 2nd, 2010 No Comments

The US Justice Department announced that it would intervene in a qui tam case involving Kellogg Brown & Root, Panalpina, and others. The companies are accused of allegedly accepting kickbacks while working as contractors in military logistics operations in Iraq. According to the suit, the merger of Eagle Global Logistics and TNT Logistics worked with Panalpina to provide kickbacks to KBR employees in the form of meals, drinks, golfing, and tickets to sports games. The suit also alleges that a subcontractor of KBR working in the Balkans, Wesco, has been overbilling while under a military contract. The suit was filed in the US District Court for Texas’ Eastern District. Implicated in the suit, Eagle Global Logistics has already settled in a previous suit, seeing two pleading guilty to criminal charges and the company itself being charged $4 million. The company was caught filing for expenses that did not exist concerning war risk insurance, putting the orders through KBR, and then expecting the US Army to pay. The company had also been connected to overcharging the government in a case involving shipping, as well as another $750,000 settlement due to allegations of kickbacks also involving KBR. The US Justice Department said its involvement in the case will be limited, but nevertheless present in the case proceedings.

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