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.

DOJ Considers Joining Home Depot Qui Tam Lawsuit

Posted on June 28th, 2011 No Comments

The Department of Justice is looking into a qui tam lawsuit filed against Home Depot Inc. to see if the suit’s allegations merit the government joining the suit in a leading role.

Accoridng to court documents, the lawsuit alleges purchases made under a government contract violate the Buy American Act of 1933, a law designed to favor American-made products for government purchases. The lawsuit was filed last year against a number of companies, but Home Depot remains a defendant as it has not reached a settlement with the plaintiffs.

The lawsuit was filed by two former employees of Actus Lend Lease, a global developer of communities that has done contract work to build housing for the U.S. armed forces, against Actus and other companies, including Home Depot. Actus settled the matter for $1 million last year.

Home Depot issued a statement this week saying the company “would never knowingly sell prohibited goods under any circumstances, and we have been cooperating with the government to provide the requested information. We believe the plaintiffs have an inaccurate view of the facts.”

Under whistle blower, or qui tam, lawsuits, plaintiffs are entitled to a portion of any money recovered by the government if it endorses the legal action. If you have information of government contract fraud, please contact the Qui Tam Lawyers of Tycko & Zavareei LLP by calling 202-973-0900.

IASIS Qui Tam Lawsuit Dismissed

Posted on June 6th, 2011 No Comments

An Arizona judge has dismissed a qui tam lawsuit filed against IASIS Healthcare LLC.

According to United States District Court for the District of Arizona documents, the lawsuit was filed in March 2005 and became the subject of subpoena by the Office of Inspector General in September 2005. IASIS filed a motion for the dismissal of Fraizer’s lawsuit, as information supplied with the suit was subject to a claim of attorney-client privilege.

The United States Court of Appeals for the Ninth Circuit ruled in August 2010 that the plaintiff, Jerry Frazier, while failing to plead an actionable claim against IASIS Healthcare, should be allowed the chance to amend his complaint.

While the order is appealable, the IASIS motion is expected to effectively end Fraizier’s qui tam litigation.

If you need assistanc with a Qui Tam Lawsuit, please contact the Whistleblower Lawyers of Tycko & Zavareei, LLP, at 202-973-0900.

$241M Settlement in CA Healthcare Fraud Qui Tam Lawsuit

Posted on June 1st, 2011 No Comments

Quest Diagnostics has agreed to pay $241 million to settle a qui tam lawsuit alleging the company overcharged California’s Medi-Cal program.

California Attorney General Kamala D. Harris announced the settlement on Friday, saying it was the largest recovery in the history of California’s False Claims Act. “In this time of shrinking budgets, this historic settlement affirms that Medi-Cal exists to help the state’s neediest families, rather than to illicitly line private pockets,” Harris said. “Medi-Cal providers and other who try to cheat the state through false claims and illegal kickbacks should know that my office is watching and will prosecute.”

The settlement with Quest is the result of a qui tam lawsuit filed in 2005 which claimed the company systematically overcharged the state’s Medi-Cal program for more than 15 years. The lawsuit also alleged that Quest gave illegal kickbacks in the form of discounted or free testing to doctors, hospitals, and clinics that referred Medi-Cal patients and other business to the labs.

California laws states that no provider can charge Medi-Cal “for any service more than would have been charged for the same service to other purchasers of comparable services under comparable circumstance.”

If you have information on healthcare fraud, please contact the Qui Tam Attorneys of Tycko & Zavareei, LLP, at 202-973-0900.

Shell Pays $2.2M to Settle Qui Tam Lawsuit

Posted on May 11th, 2011 No Comments

Shell has agreed to pay the United States more than $2.2 million to resolve a qui tam lawsuit claiming the company underpaid royalties owed on natural gas produced from Federal leases.

According to officials with the Department of the Interior and the U.S. Department of Justice, the total payment, including interest, is $2,287,145.74. “We are required to ensure that energy companies accurately report production and pay the required royalties,” Chris Henderson, Acting Assistant Secretary of the Department of Interior’s Office of Policy said. “We will continue to pursue any case where companies do not follow the rules.”

The settlement with Shell stems from a qui tam lawsuit filed by Harrold Wright. Because Mr. Wright is deceased, his descendents will receive $527,000 of the settlement. The lawsuit was handled by the Justice Department’s Civil Division and the Department of the Interior’s Office of Natural Resources Revenue.

If you have information of fraud against the government, please contact the Whistleblower Attorneys of Tycko & Zavareei, LLP, by calling 202-973-0900.

California Joins Bristol Meyers Qui Tam Lawsuit

Posted on April 18th, 2011 No Comments

The California Insurance Commissioner announced Wednesday the state will intervene in a qui tam lawsuit against Bristol Myers-Squibb.

According to California Insurance Commissioner Dave Jones, the lawsuit is the largest health insurance fraud case ever pursued by a California state agency. The lawsuit was filed by former Bristol Myers-Squibb employees under seal in Superior Court in Los Angeles. The lawsuit alleges that the company provided illegal kickbacks to doctors who prescribed the BMS drugs.

According to Jones, his office is seeking monetary penalties and the disgorgement of millions of dollars in unlawful profits the company made as a result of the kickbacks.

“This sort of fraud has long plagued our health insurance system,” Jones said. “Besides the obvious and deplorable ethical violations in such cases, healthcare fraud also leads to higher premiums for consumers and an unnecessary and unjust increase in healthcare costs.”

If you have information on healthcare fraud, please contact the Qui Tam Lawyers of Tycko & Zavareei, LLP, by calling 202-973-0900.

Government Intervenes in Depakote Qui Tam Lawsuits

Posted on March 15th, 2011 No Comments

Federal prosecutors are intervening in three qui tam lawsuits against Abbott Laboratiories that claim the drug maker illegally promoted the epilepsy medication Depakote.

According to officials with the United States Department of Justice, the government has decided to intervene in whistleblower lawsuits brought by former Abbott employees who claim that the company gave doctors seminars in off-label use of Depakote and then lied about what the seminars were about. The lawsuits claim Abbott told doctors they could use Depakote to treat dementia and Alzheimer’s disease.

Depakote is an anti-seizure drug approved by the FDA for the treatment of epilepsy. The drug is not approved for the treatment of dementia or Alzheimer’s disease. It is illegal for drug companies to promote “off-label” uses that have not been approved by the FDA.

The details of the qui tam complaints have been sealed by the Justice Department.

If you have information regarding healthcare fraud, please contact the Qui Tam Lawyers of Tycko & Zavareei, LLP, by calling 202-973-0900.

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.

Microsoft and Qui Tam Litigation

Posted on February 11th, 2011 No Comments

Microsoft Corp. is seeking to put an end to qui tam litigation for false patent marking, the company said last week.

A post by Microsoft’s Senior Vice President and General Counsel Brad Smith and Vice President Deputy General Counsel Horacio Guitierrez, outlined aspects of the U.S. Patent and Trademark Office that the company believes need to be reformed. “In our view, the time has arrived to move beyond old controversies and focus on ensuring that the United States Patent and Trade Mark Office has the resources and tools it needs to improve patent quality and continues to tackle the enormous backlog it faces today,” the post said.

Smith and Guiteirrez said they company believes qui tam litigation for false patent marking, the practice wherein individuals can sue manufacturers for incorrectly including patent numbers on their products, should be a thing of the past. A qui tam lawsuit was filed last year against Apple, Sprint, Verizon, and Samsung which claimed the companies falsely marketed products with expired patents, or patents that did not cover the marked products, “with the intent to deceive the public about the patent coverage for their products.”

To speak with the Qui Tam Lawyers of Tycko & Zavareei, LLP, please call 202-973-0900.

$16M Settlement in St. Jude Qui Tam Lawsuit

Posted on January 26th, 2011 No Comments

St. Jude Medical has agreed to pay a $16 million settlement to end a qui tam lawsuit filed by a former employee.

The United States Department of Justice announced the settlement agreement on Tuesday. According to the Justice Department’s claims, St. Jude paid doctors as much as $2,000 per patient to convince them to have the company’s pacemakers and defibrillators implanted. The lawsuit alleged that St. Jude used three post-market studies and a medical device registry as cover for payments to doctors to entice them to implant their heart devices in patients.

The company solicited physicians to participate in the studies to get them to stop using competitor products and to continue to implant their patients with St. Jude devices.

In a press release, issued the same day the settlement was announced, St. Jude claimed that the post-market studies and registries were legitimate clinical studies used to gather “important scientific data.” The company stated the settlement is not an admission of guilt, and that it agreed to the terms to avoid the cost of lengthy litigation.

If you have information on health care fraud, please contact the Qui Tam Attorneys of Tycko & Zavareei, LLP, by calling 202-973-0900.

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