VIRGINIA MEDICAL RESEARCH COMPANY AGREES TO $343,000 SETTLEMENT
Last week, Virginia-based medical research company American International Biotechnology (AIB) agreed to pay $343,000 to settle a lawsuit filed under the qui tam provisions of the False Claims Act. The suit (U.S. ex rel. Greentree Medical Center, PC v. American International Biotechnology, LLC et al., Civil Action No. 13-597 (W.D. Pa.) )alleges that AIB employees obtained improper referrals for...
JUDGE’S RULING POINTS TO GREATER RETALIATION PROTECTION FOR WHISTLEBLOWERS
Whistleblowers are sometimes hesitant to report fraudulent activity in their workplace for fear of employer retaliation, such as demotion or termination. However, in the past few years, a number of legislative changes have provided increased protections for whistleblowers to encourage their bravery and honesty. A recent decision from the United States Court of Appeals for the Sixth Circuit...
Florida Hospital Must Pay for “Reprehensible” Record Destruction in Stark Case
A Florida federal judge ordered sanctions against Halifax Hospital Medical Center for destroying evidence requested as part of a False Claims Act suit. The suit (United States ex rel v. Halifax Hospital Medical Center, et al., No. 09-cv-1002 (M.D. Fla) led to an $85 million settlement agreement in March, with a second phase of the same suit set for trial in July. The hospital must now pay the...
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...