On January 13, 2021, Washington, D.C. Mayor Muriel Bowser signed the False Claims Amendment Act of 2020 into law. Unless it is opposed by a joint Congress during their 30-day review period, which is not expected, it will soon become effective. The Amendment, passed by a 12-1 supermajority vote of D.C’s Council members, makes four […]
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One available use of the False Claims Act is to stop pharmaceutical manufacturers and pharmacy benefits managers (PBMs) from artificially inflating drug prices. Skyrocketing drug prices directly caused by schemes concocted by major players in the health care space are invariably passed along to federal health care programs such as Medicare, Medicaid, TRICARE for military […]
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This past year, the Justice Department went after companies that cheated taxpayers out of $2.2 Billion. Those monies were recovered on behalf of defrauded taxpayer-funded programs, grants, and contracts. That $2.2 Billion figure represents only one single year of fraud recoveries under the False Claims Act. Well over 70 percent of these taxpayer cheats were […]
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On December 3, 2020, the United States Court of Appeals for the Second Circuit issued its decision in United States v. Strock (Strock), a ruling that will significantly strengthen the hand of the government, and of qui tam whistleblowers, in False Claims Act cases against companies awarded government set-aside contracts but do not meet the […]
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Two U.S. government contractors, Bechtel National Inc., Bechtel Corporation (Bechtel) and AECOM Energy & Construction, Inc. (AECOM), along with subsidiary Waste Treatment Completion Company, LLC (WTCC), have agreed to pay $57.75 million to resolve fraud allegations for overcharging the U.S. Department of Energy (DOE) for unallowable idle time charges for workers on the Hanford nuclear […]
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The Department of Justice last week announced a $22.8 million settlement involving customs duty fraud—one of the largest False Claims Act settlements involving customs duties to date. A former company employee reported the alleged violations against German multinational chemical and gas company, Linde AG, and its American subsidiary, Linde Engineering North America, Inc. (collectively, “Linde”). […]
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The Scripps Research Institute (TSRI), located in Florida and California, agreed to pay $10 Million to resolve claims that it improperly charged NIH-funded research grants for time spent on non-research related activities. The non-related activities included developing, preparing, and writing new grant applications, teaching, and engaging in other administrative activities. The settlement resolves allegations that […]
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PROGENITY, INC. (“PROGENITY”), a San Diego-based biotechnology company that provides molecular and diagnostic tests agreed to a $49 million settlement for fraudulent billing and kickback practices. The settlement resolves claims that the biotechnology company fraudulently billed federal healthcare programs for prenatal tests and provided kickbacks to physicians to persuade them to order PROGENITY tests for […]
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Whistleblowers Share $8 Million False Claims Act Settlement of Unpaid Import Duties Allegations Two whistleblowers receive $1.48 million as part of a recent settlement to resolve False Claims Act allegations between a vehicle parts supplier and the government. The False Claims Act allows private parties to sue on behalf of the U.S. government and receive […]
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The U.S. Department of Justice (DOJ) recently announced that a major pharmaceutical company, Novartis Pharmaceuticals, agreed to pay $642 million to settle a lawsuit alleging that Novartis violated the False Claims Act (FCA). That lawsuit was initially filed by a whistleblower under the “qui tam” provision of the FCA, which allows a private citizen to […]
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