The United States has filed a complaint against Boston Scientific Corp. and related Guidant companies, under the False Claims Act, for selling cardiac devices which it knew were defective. Implantable cardiocerter defibrillaors designed to send a pulse to the heart to prevent sudden death. The government says Guidance knew as early as 2002 that...
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Category: False Claims Act
Landis v. Armstrong: Postal Service Paid Lance Armstrong Linked Firm $32 million
The U.S. Postal Service has revealed that it paid a San Francisco company running the team sponsoring Lance Armstrong, $32 million in sponsorship moneys. The information was revealed in Freedom of Information Act requests. Former Armonstrong teammate Floyd Landis filed a whistleblower case under The False Claims Act, alleging that Tailwind Sports, a sports...
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U.S. INVESTIGATED MORTGAGE LENDERS FOR FED GUARANTEES
The U.S. Department of Justice is aggressively investigating whether mortgage lenders defrauded the government by improperly obtaining federal guarantees on mortgage debt. Some claims are being filed by individual whistleblowers under the False Claims Act which allows for whistleblower recovery of a percentage of what the government recovers. Mentions of government subpoenas have been...
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Mail Sorting Firms Pay $4.2 million for defrauding Postal Service
Three mail sorting copanies will pay $4.2 million for defrauding the Postal Service by saying they were entitled to discount postage rates. Quicksort settled the False Claims Act whistleblower case which alleged that the firm falsely represented the amount of mail they had pre-sorted in order to obtain postage rate discounts. Businesses hire sorters...
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EMPLOYMENT RELEASES CAN DESTROY WHISTLEBLOWER SUITS
Often, companies fearful of whistleblower cases including False Claims Act cases, will encourage departing employees to sign releases which have broad language promising not to sue the company. The enforceability of these releases varies depending on the geographic location you live in and the court's differing interpretation of law. Before signing, have counsel advise...
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Rash of new False Claims Act/Patent Marking Suits Bolstered by Opinion
A new kind of lawsuit being filed around the country claims that manufacturers who marked their products with expired patents is not only against the law, it is a violation of The False Claims Act and millions of falsely labeled products could results in penalties of trillions of dollars. Tuesday a Federal Circuit Court...
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DOJ pushes False Claims Act Case Vs. Nelnet student loans
The Dept of Justice has filed a brief in the U.S. District Court of Virginia wants a case to go foward against Nelnet Inc. for nearly $1 billion of overpayments it received from the government through the Department of Education. Nelnet is a student loan company which was charged with a scheme to bilk...
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Gov. To Use False Claims Act vs. BP
The Dept. of Justice is planning to use the nation's whislteblower law. The False Claims Act, to recover losses suffered in the Gulf from the Deepwater Horizon disaster. Whisltblowers are expected to recover significant bounties for original information they provide about wrongdoing.
NORTHROP TO PAY $12.5 MILLION TO SETTLE FALSE CLAIMS ACT CASE
Northrop Grumman Corp. has agreed to pay the federal government $12.5 million to settle allegations that it neglected to test certain electronic parts it supplied for navigation systems in military airplanes, helicopters and spacecraft, the U.S. Justice Department said Wednesday.
The settlement stems from a whistle-blower lawsuit filed in May 2006 against the Century City-based...
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Top False Claims Act Cases By Award Amount
Settlement ($) Date
HCA * 731,400,000 Dec-00
HCA * 631,000,000 Jun-03
Serono Group * 567,000,000 Oct - 05
TAP Pharmaceuticals Products Inc. * 559,483,560 Oct-01
Abbott Labs * 400,000,000 Jul-03
Fresenius Medical Care of N. America* 385,000,000 Jan-00
SmithKline Beecham Clinical Labs (tie) 325,000,000 Feb-97
HealthSouth * (tie) 325,000,000 Dec-04
National Medical Enterprises * 324,200,000...
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