Posts Tagged With False Claims

Subscribe to False Claims RSS Feed

Medical Device Maker Biocompatibles Pleads Guilty to Misbranding and Agrees to Pay $36 Million to Resolve Criminal and Civil Liability

On November 7, 2016, medical device manufacturer Biocompatibles Inc., which is a subsidiary of BTG plc, pled guilty to a misdemeanor charge for misbranding its LC Bead device.    LC Bead is an embolic device used to treat liver cancer and other diseases.  LC Bead was cleared by the U.S. Food and Drug Administration (FDA) as an embolization device, which is inserted in blood vessels in order to stop or lessen blood flow to tumors and
Continue Reading

Nursing Home Pharmacy to Pay over $28 Million to Settle Kickback Allegations

On October 17, 2016, Omnicare Inc. agreed to pay over $28 million to resolve allegations that it solicited and received kickbacks from Abbott Laboratories in exchange for promoting their drug to its nursing home patients.  According to the complaint, Omnicare accepted payments from Abbott in return for promoting one of Abbott’s drugs, and then described the payments as “grants” or “educational funding.”  A global civil and criminal resolution was reached with Abbott in 2012, in
Continue Reading

Utah-Based Lender Agrees to Pay $4.25 Million to Resolve Alleged False Claims Act Liability Arising from FHA-Insured Mortgage Lending

On October 3, 2016, SecurityNational Mortgage Co. (“SecurityNational”) agreed to pay $4.25 million to resolve allegations that it violated the False Claims Act by originating and underwriting loans insured by the Department of Housing and Urban Development (“HUD”) Federal Housing Administration (“FHA”) that did not meet FHA requirements.  SecurityNational has participated as a Direct Endorsement Lender (“DEL”) in the FHA insurance program since January 2006.  Although DELs are required to ensure that loans are in
Continue Reading

Hospital Chain Will Pay over $513 million for Kickback Scheme

On October 3, 2016, the DOJ announced that Tenet Healthcare Corporation and two of its subsidiaries will pay over $513 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States and to pay kickbacks.  The two subsidiaries, Atlanta Medical Center Inc. and North Fulton Medical Center Inc., have agreed to plead guilty to violations of the Anti-Kickback Statute.  In addition, Tenet Health System Medical Inc., a subsidiary of
Continue Reading

Branch Banking & Trust Company Agrees to Resolve False Claims Act Allegations, Paying $83 Million

On September 29, 2016, Branch Banking & Trust Company (“BB&T”) agreed to pay $52.4 million to resolve allegations that it violated the False Claims Act in relation to its role as a direct endorsement lender (“DEL”) in the FHA insurance program.  As a DEL, BB&T was required to follow certain program rules, but was able to approve a mortgage loan for FHA insurance without review by the FHA.  As part of its settlement, BB&T admitted
Continue Reading

Regions Bank Agrees to Resolve False Claims Act Allegations, Paying $52.4 Million

On September 13, 2016, Regions Bank agreed to pay $52.4 million to resolve allegations that it violated the False Claims Act in relation to its role as a direct endorsement lender (“DEL”) in the FHA insurance program.  As a DEL, Regions was required to follow certain program rules, but was able to approve a mortgage loan for FHA insurance without review by the FHA.  As part of its settlement, Regions has admitted that it certified
Continue Reading

Principal Deputy Assistant Attorney General David Bitkower Delivers Remarks at American Bar Association Southeastern White Collar Crime Institute

On September 8, 2016, Principal Deputy Assistant Attorney General David Bitkower addressed the American Bar Association Southeastern White Collar Crime Institute to speak about the role of the DOJ Criminal Division, and specifically highlight the Criminal Division’s new approaches with respect to health care fraud, sophisticated financial fraud and FCPA matters.  Starting with health care fraud, Bitkower discussed the Medicare Fraud Strike Force, which operates in nine regions identified as “hot spots” for health care
Continue Reading

Acting Associate Attorney General Bill Baer Delivers Remarks on Individual Accountability at American Bar Association’s 11th National Institute on Civil False Claims Act and Qui Tam Enforcement

In his remarks on June 9, Acting Associate Attorney General Bill Baer highlighted the significance of the qui tam provisions of the False Claims Act and reaffirmed DOJ’s commitment to investigating and charging individuals alongside companies for corporate misdeeds, noting that “companies act through their executives.”  Baer went on to explain DOJ’s expectations regarding corporate cooperation: “companies that are facing FCA allegations and want a settlement to credit their cooperation are expected to disclose all
Continue Reading

Supreme Court Issues Universal Health Services False Claims Act Decision

On June 16, the Supreme Court issued its opinion in Universal Health Services, Inc. v. United States, No.15-7, a qui tam suit alleging that Universal Health had violated the False Claims Act (“FCA”) by implying false certifications and making material misrepresentations.  The Court held that, under some circumstances, an implied false certification theory can be a basis for FCA liability when a defendant submitting a claim makes specific representations about the services but fails
Continue Reading

U.S. Attorney Announces $54 Million Settlement against Pharma Company for Kickbacks

On June 9, United States Attorney Preet Bharara, announced a $54 million settlement with Salix Pharmaceuticals over Anti-Kickback Statute and False Claims Act allegations in the Southern District of New York.  The lawsuit alleged that the company used a pattern of “speaker programs” to entertain physicians with expensive meals and social events, under the guise of educational events, in order to entice them to prescribe Salix-manufactured drugs and medical devices.  The government further maintained that
Continue Reading

Pharmaceutical Companies to Pay $67 Million to Resolve False Claims Act Allegations

On June 6, DOJ announced a $67 million settlement with two pharmaceutical companies, Genentech Inc. and OSI Pharmaceuticals LLC, in connection with allegations that the companies made misleading claims regarding the effectiveness of the drug Tarceva in violation of the False Claims Act.  The government alleged that the companies had made representations to physicians and Medicaid that overstated the drug’s efficacy in treating small-cell lung cancer.  The case was initially brought by a former Genentech
Continue Reading

UPS Agrees to Pay $25 Million to Settle Civil False Claims Act Violations

On May 19, United Parcel Service Inc. (“UPS”) signed a civil settlement resolving allegations that it violated the whistleblower provision of the False Claims Act.  In its contracts with several federal agencies, UPS guaranteed delivery of packages by a certain time and was accused of knowingly recording inaccurate delivery times to make it appear as if they had met these time constraints when the deliveries were late.  UPS was also charged with falsely using “exception
Continue Reading

Two More Guilty Pleas and Indictment in Antitrust Department’s Investigation of Price Fixing and Bid Rigging in Automotive Parts Industry

  • On January 6, Makoto Horie, former Vice President of Sales at Toyoda Gosei North America, agreed to plead guilty in the Northern District of Ohio and to serve one year and one day in prison for his role in a conspiracy to fix prices and rig bids of automotive hoses installed in cars sold in the United States.  United States v. Horie, 15 Cr. 003 (N.D. Ohio). DOJ Press Release.
  • On January 22,

Continue Reading

Daiichi Sankyo Inc. Agrees to Pay $39 Million to Settle Kickback Allegations Under the False Claims Act

On January 9, Daiichi Sankyo Inc., a global pharmaceutical company, agreed to pay the United States and state Medicaid programs $39 million to resolve allegations that it violated the False Claims Act by paying kickbacks to induce physicians to prescribe Daiichi drugs, including Azor, Benicar, Tribenzor, and Welchol.  The government alleged that Daiichi paid physicians improper kickbacks in the form of speaker fees between Jan. 1, 2005 and Feb. 4, 2011.  Allegedly, payments were made
Continue Reading

Agilent Technologies, Inc. Resolves Fraud Allegations of Bid Rigging

On November 5, Agilent Technologies, Inc. agreed to pay $849,678 to resolve allegations that it submitted false claims to the United States in connection with the sale of electronic measurement instruments.  In March 2013, Agilent made a voluntary disclosure to the Inspector General of the Department of Defense that certain sales of electronic measurement instruments and systems to the government were the result of improper coordination of pricing and bid strategy between Agilent and its
Continue Reading

Caremark Will Pay $6 Million to Resolve False Claims Act Allegations

On September 26, DOJ announced that Caremark L.L.C., a pharmacy benefit management company operated by CVS Caremark Corporation, will pay $6 million to settle allegations that Caremark knowingly failed to reimburse Medicaid for prescription drug costs paid on behalf of Medicaid beneficiaries who also were eligible for drug benefits under Caremark-administered private health plans.  The settlement arose from a lawsuit filed in the Western District of Texas by a former Caremark employee under the whistleblower
Continue Reading

Enzo Biochem, Inc. and Enzo Clinical Laboratories Pay $3.5 Million to Resolve Civil Fraud Allegations

On September 24, U.S. Attorney for the Eastern District of New York Loretta E. Lynch  announced that Enzo Biochem, Inc. had entered a settlement agreement with the United States and New York State to resolve a case brought under the federal False Claims Act and the New York False Claims Act. The matter involves allegations that Enzo wrongfully input diagnosis codes into claim forms that it submitted for payment to the Centers for Medicare &
Continue Reading

Assistant Attorney General for the Criminal Division Leslie R. Cardwell Delivers Remarks About Criminal Cases Under the False Claims Act

In prepared remarks delivered at the Taxpayers Against Fraud Education Fund Conference on September 17, Caldwell announced that the Criminal Division would increase its commitment to criminal investigations and prosecutions that stem from allegations in False Claims Act lawsuits.  Caldwell stated that “[q]ui tam cases are a vital part of the Criminal Division’s future efforts” and discussed the Division’s strategy for coordinating with the Civil Division and proceeding with parallel investigations in appropriate cases. 
Continue Reading

LexBlog