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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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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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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