False Claims Act

Veloxis Pays $46M to Settle Kickback Allegations -- Just the Latest Whistleblower-Originated Kickback Settlement Under the False Claims Act

By the Constantine LLP Whistleblower Team On August 10, the Department of Justice (DOJ) announced that North Carolina-based drug maker Veloxis Pharmaceuticals agreed to pay roughly $46 million to settle criminal and civil allegations it violated the False Claims Act and Anti-Kickback Statute by paying kickbacks to induce prescriptions and purchases of its kidney transplant drug Envarsus.[1]  As U.S. Attorney...

Defense Contractor to Pay $7.75M to Resolve False Claims Act Case

By the Constantine LLP Whistleblower Team Defense contractor Sierra Nevada Company, LLC (“SNC”) recently agreed to pay $7.75 million to settle alleged False Claims Act violations stemming from its employment of a government official who “participated personally and substantially” in government contracts awarded to SNC.[1]

What Were the Government’s False Claims Act Allegations Against SNC?

The...

And Yet Another Whistleblower-Originated False Claims Act Kickback Settlement

By the Constantine Cannon Whistleblower Team Last Thursday (July 30), the Department of Justice (DOJ) announced that Houston-based Access DX Laboratory -- and its former CEO Michael Stewart along with Florida businessman Harold Shatz -- agreed to collectively pay $36.4 million to settle allegations they violated the False Claims Act and Anti-Kickback Statute by paying kickbacks and billing Medicare/Medicaid for...

Addiction Recovery Care and Affiliates Pay $16.2M Civil Judgment to Resolve Kentucky Medicaid Fraud Allegations

By the Constantine Cannon Whistleblower Team Kentucky-based Addiction Recovery Care, LLC (“ARC”), plus its affiliates Pioneer Health Group, LLC and Science Hill Family Care, LLC, agreed to pay $16,205,774 to resolve allegations that they defrauded the Kentucky Medicaid program and violated the False Claims Act, a federal statute that prohibits submissions of false claims for payment to government healthcare...

Catching A COVID-19-Era Fugitive and More COVID-19-Related Fraud Enforcement Actions

By the Constantine Cannon Whistleblower Team Over the last few weeks, the government has announced a slew of COVID-19-related fraud enforcement actions. We’re diving into the recent stream of activity and what this could indicate in terms of the government’s future enforcement priorities. Several of the cases we’re reporting on were initiated by whistleblowers (or relators) under the qui tam (or...

DOJ Continues Full Court Press Against Customs Fraud and For Whistleblowers to Help the Charge

By the Constantine Cannon Whistleblower Team On July 14, the Department of Justice (DOJ) announced it had crossed the $1 billion threshold in civil and criminal customs fraud recoveries since launching its Trade Fraud Task Force last August.[1]  DOJ described it as a major milestone that “reflects a fundamental shift in the federal government’s approach to customs and trade enforcement, emphasizing rigorous...

Redi-Bag Pays $7.3M in Latest Whistleblower-Originated Customs Fraud Case

By the Constantine Cannon Whistleblower Team Last Wednesday (July 15), the Department of Justice (DOJ) announced that Redi-Bag USA and its CEO, Jeffrey Rabiea, agreed to pay $7.3 million to settle allegations they violated the False Claims Act by engaging in customs fraud.[1]  Specifically, DOJ claimed the New York-based supplier of custom bags, liners, and packaging misrepresented to Customs and Border Protection...

Labcorp Settles False Claims Act Allegations of Unnecessary Urine Drug Testing for $14.5 Million

By the Constantine Cannon Whistleblower Team On July 15, the United States Attorney’s Office for the District of Massachusetts announced that Laboratory Corporation of America (Labcorp), a national diagnostic testing laboratory, agreed to pay $14.5 million to resolve allegations that it violated the False Claims Act by submitting medically unnecessary claims for urine drug testing (UDT) to Medicare. [1]

What...

DOJ Settles Another Whistleblower-Originated False Claims Act Kickback Case

By the Constantine Cannon Whistleblower Team Last Wednesday (June 17), the Department of Justice (DOJ) announced that Arkansas-based Advanced Pathology Solutions (APS) -- and its owners Kevin Hannah, Donell Burkett, and Daniel Hunter Pledger -- agreed to pay $30 million to settle allegations they violated the False Claims Act and Anti-Kickback Statute by paying kickbacks to gastroenterology practices for pathology...

DOJ Secures $21.3M False Claims Act Settlement for Fraud Involving Service-Disabled Veteran Owned Businesses

By the Constantine Cannon Whistleblower Team Last Tuesday (June 9), the Department of Justice (DOJ) announced that Illinois-based Broadway Electric Inc. and Cornerstone Contracting Inc. -- along with their CEO John Oehler and President Christian Blake -- agreed to pay $21.3 million to settle allegations they violated the False Claims Act by fraudulently securing federal contracts reserved for service-disabled...