MEDTRONIC’S $9.9 MILLION SETTLEMENT REINFORCES THE IMPORTANCE OF THE QUI TAM RELATOR
Medtronic, a Minnesota-based medical device manufacturer, agreed last week to pay a $9.9 million to settle a False Claims Act suit filed by a former employee of the company. The suit (United States ex rel. Schroeder v. Medtronic, Inc., No. 2:09-cv-0279 WBS EJB (E.D. Cal.)) alleged that Medtronic was providing kickbacks and monetary bonuses to physicians who used the company’s pacemakers...
Whistleblower First-to-File Rule May Apply even if No Other Suit Pending
The United States Circuit Court for the District of Columbia recently weighed in on the Whistleblower statute’s (False Claim Act’s) first-to-file rule as it applies to a whistleblower filing a second complaint in the case of Shea v. Cellco Partnership. The court issued a ruling on April 11, 2014 and its ruling has created some controversy.
In Shea, Stephen Shea filed a...
Whistleblower Law for Bribes to Foreign Officials
The Foreign Corrupt Practices Act (FCPA) prohibits United States Companies and individuals (as well as certain foreign companies that are required to make certain filing with the United States Securities and Exchange Commission (SEC)) from offering bribes or kickback to obtain business. The FCPA specifically addresses bribery as follows:
It shall be unlawful for any issuer …, or for any...
“Practice Group” Exception to Stark Law
The Stark Act, 42 USC Section 1395, includes a number of exceptions to the prohibition to the ownership and compensation arrangement described in my recent post. The evaluation and application of these exceptions can be a complex undertaking, thereby making a determination as to whether a particular arrangement is permitted by the Stark Law also complex. The exceptions include Section...
What is the Stark Law?
What is the Stark Law?
Congress enacted the Stark Law as part of the Omnibus Budget Reconciliation Act of 1989. The Stark Law, 42 USC Section 1395nn, also referred to as the Physician Self–Referral Law, has certain prohibitions when a physician or member of his or her immediate family has a direct or indirect financial arrangement or relationship with an entity:
(1) First, the physician may...
Statute of Limitations for False Claims Act Suspended for War
In the previous post I discussed the statute of limitations for Whistleblower cases (suits filed under the False Claims Act). Last year, the United States Court of Appeals for the Fourth Circuit ruled on an interesting issue as to whether the statute of limitations was suspended due to the fact that the United States had been at “war” in the case of Carter v. Halliburton, 710...