Judge Clears Way for Johnson & Johnson Qui Tam Lawsuit

Posted on March 3rd, 2011 No Comments

A federal judge has denied a motion to dismiss a qui tam lawsuit filed against Johnson & Johnson, which accuses the company of involvement in an illegal kickback scheme.

The company sought to have claims brought by the Department of Justice, a number of whistleblowers, and numerous states dismissed, saying that the so-called illegal kickbacks were completely legal rebates. U.S. District Judge Richard Stearns found, however, the plaintiffs had sufficient evidence to go forward with the complaint. Stearns did remove several plaintiffs from the case, including the states of Nevada, Texas, and Illinois. Kentucky, Indiana, and Virginia remain part of the lawsuit.

The qui tam lawsuit, filed January 15, 2010, claims Johnson & Johnson was involved in a kickback scheme to push their antipsychotic drugs, namely Risperdal, on elderly nursing home residents that did not need them. According to the complaint, the drug-maker paid $50 million to Omnicare between 1999 and 2004 to get the company to prescribe Risperdal to elderly patients with dementia. The lawsuit also claims Johnson & Johnson hid those kickbacks as payments for services that Omnicare never actually provided.

To discuss filing a Qui Tam Lawsuit, please contact the Whistleblower 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 theĀ 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.

$13.2M Settlement in American Grocers Qui Tam Lawsuit

Posted on December 1st, 2010 No Comments

American Grocers, Inc. has agreed to pay $13.2 million to settle a qui tam lawsuit.

The lawsuit accused American Grocers of engaging in false or fraudulent conduct by shipping food products past or near their expiration dates to United States troops stationed in the Middle East. The settlement was reached more than five years after whistleblower Delma Pallares filed the lawsuit.

Pallares’ attorney, Joel Androphy, said he is pleased with the resolution. “Despite her fears of retaliation, Delma came to us with a compelling story,” Androphy said. “The supporting evidence demonstrated a brazen effort to manipulate expiration dates.” During a federal raid of an American Grocers warehouse federal agents witnessed employees changing expiration dates on food products.

By bringing a Qui Tam lawsuit, a whistleblower helps expose fraud against the government and can receive between 15 and 30 percent of the amount recovered in the lawsuit. If you have information of fraud against the government, please contact the Qui Tam lawyers of Tycko & Zavareei, LLP, by calling 202-973-0900.

$16.3M Settlement in Ameritox Qui Tam Lawsuit

Posted on November 24th, 2010 No Comments

A drug-testing company has agreed to pay $16.3 million to settle a qui tam lawsuit alleging Medicare fraud.

The lawsuit was filed against Ameritox Ltd. in 2007 by former sales representative Debra Maul, of Belleair Beach, who is entitled to $3.4 million of the settlement. Maul filed a qui tam lawsuit alleging Ameritox paid kickbacks to doctors to induce them to refer Medicare business.

Ameritox has agreed to enter a five-year corporate integrity agreement with the United States Department of Health & Human Services Office of Inspector General, and will hire an independent review organization to scrutinize its contractual relationships. Attorney Robert E. O’Neill said the case was historic. “This settlement marks another notable achievement in our continuing campaign against health care fraud in the Tampa Bay area,” O’Neill said. “Working side by side with our law enforcement agencies, we will be extremely diligent in our attempt to eliminate these kinds of practices in our district.

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

Settlement Reached in Louis Berger Qui Tam Lawsuit

Posted on November 19th, 2010 No Comments

A multi-million dollar settlement has been reached in a qui tam lawsuit filed against one of the U.S. government’s largest contractors in Afghanistan.

According to court documents, the Justice Department has agreed to end its investigation into the allegations that contractor Louis Berger intentionally overcharged American taxpayers for work in Afghanistan. In turn, Louis Berger will pay the government a settlement that could be as high as $65 million, which includes both civil and criminal penalties.

The qui tam lawsuit was filed by a former Louis Berger employee in 2006. The whistleblower provided evidence against the firm to the U.S. Agency for International Development, which chose the company to jointly oversee more than a billion dollars in reconstruction contracts in Afghanistan. Louis Berger’s over-billing dates back to the mid 1990s.

If you are aware of fraudulent activity on the part of a company hired by the government, you may be eligible for a reward if you are able to successfully bring a Qui Tam lawsuit against the company. For more information, please contact the Qui tam lawyers of Tycko & Zavareei, LLP, by calling 202-973-0900.

Christus Settlement Part of $63M Whistleblower Case

Posted on November 9th, 2010 No Comments

Christus Health Systems has agreed to pay almost a million dollars to the federal government as part of a $62.9 million settlement in a larger lawsuit filed in 1998.

According to court documents, Mark Razin, a former employee of Healthcare Financial Advisors Inc., filed the qui tam lawsuit in 1998 claiming the company encouraged hospital to make fraudulent “adjustments” to cost reports in order to secure Medicare reimbursements. The recent Christus settlement resolves a fraudulent Medicare billings lawsuit which dates back to 1988.

According to the qui tam lawsuit, Christus hospitals billed Medicare for advertising and marketing costs, as well as administrative costs. Christus was also found to have failed to disclose the improprieties to a financial intermediary appointed to review cost reports.

Razin, a whistleblower protected under the False Claims Act, stands to receive $970,987 from the Christus settlement.

If you are a whistleblower with information of fraud on the government, please contact the Qui Tam lawyers of Tycko & Zavareei LLP by calling 202-973-0900.

Illinois Doctor to Pay $20M Qui Tam Settlement

Posted on October 25th, 2010 No Comments

A former cardiologist in Illinois has agreed to pay $20 million to settle a qui tam lawsuit, according to a Department of Justice news release.

The qui tam lawsuit was filed in 2006 against Sushil Sheth, MD. The lawsuit claimed that Dr. Sheth filed fraudulent claims between 2002 and 2007 to Medicare and Medicaid for medical services at the highest level of in-patient cardiac care. The services mentioned in the filings were never performed.

The whistleblower lawsuit was filed by Lokesh Chandra, MD, a physician who worked with Dr. Sheth. She will receive a portion of the recovery collected by the federal government and the state of Illinois under the qui tam provisions of the False Claims Act.

Sheth was sentenced last month to five years in prison for stealing millions of dollars from Medicare and 30 other public and private health care insurance programs.

If you have information about fraud on government health care programs, please contact the Health care faud lawyers of Tycko & Zavareei LLP by calling 202-973-0900.

Allstate Subject of Qui Tam Lawsuit

Posted on October 14th, 2010 No Comments

Allstate Insurance has been named in a qui tam lawsuit, which alleges the company inflated the price of claims filed with the National Flood Insurance Program.

The whistleblower lawsuit was filed more than three years ago by attorney John H. Denenea, Jr. The lawsuit contends Alstate “knowingly fabricated” insurance documents to decrease its own claims payments and inflate flood losses at the expense of the federal government.

The lawsuit, originally filed in United States District Court in New Orleans, was under seal until September 21 of this year. The three year delay was to allow the federal government time to decide if it would intervene in the lawsuit. Denenea turned over all the documents in his possesion to the federal government three years ago. Judge Carl Barbier unsealed the case, explaining that the government “is not intervening at this time.”

As a whistleblower Denenea is seeking a trial and between 25 to 30 percent of any damages awarded. Had the government intervened in the case, Denenea would be entitled to 15 to 25 percent of any proceeds derived from the lawsuit.

If you are a whistleblower with information of fraud against the government, it is important to have an understanding of your legal rights and options. The Qui Tam attorneys of Tycko & Zavareei, LLP, will help guide you through the complicated legal process of filing a whistleblower lawsuit. Please call 202-973-0900 today.

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