September 1, 2020
California Appellate Court Case Holds Mandatory Service Charge May Be A Gratuity That Must Be Distributed to Employees
According to the California Employment Lawyer, a 2019 case, O’Grady v. Merchant Exchange Productions, Inc., by the California Court of Appeals decided “that a mandatory service charge could potentially be found to be a gratuity that must be distributed to service employees.” The case revolved around California Labor Code section…
September 1, 2020
Novartis Pays Over $642 Million to Settle Allegations of Improper Payments to Patients and Physicians
The US DOJ announced on July 1, 2020 that “the pharmaceutical company Novartis Pharmaceuticals Corporation (Novartis), based in East Hanover, New Jersey, agreed to pay over $642 million in separate settlements resolving claims that it violated the False Claims Act (FCA).” One settlement resolved claims Novartis allegedly used three foundations…
September 1, 2020
Universal Health Services, Inc. and Related Entities To Pay $122 Million To Settle False Claims Act
The US Department of Justice announced on July 10, 2020 that Universal Health Services, Inc, UHS of Delaware, Inc. (UHS) and Turing Point, a UHS facility, agreed to pay $122 million for illegal kickbacks and for billing for medical services that were not necessary. The settlement resolves a claim brought…
September 1, 2020
United States Files Complaint To Stop Deceptive And Improper Sales Of Consumer Background Reports
On July 27, 2020, the US DOJ issued a press release announcing that the agency, along with the Federal Trade Commission (FTC), had filed a civil complaint against a California company to stop the company “from deceiving customers in connection with its sale of subscriptions to a consumer background report…
September 1, 2020
United States Files False Claims Act Complaint Against Drug Maker Teva Pharmaceuticals Alleging Illegal Kickbacks
The US Department of Justice announced on August 18, 2020, that if filed a complaint against Teva Pharmaceuticals USA Inc. and Teva Neuroscience Inc. (Teva). The complaint asserts that the defendants illegally paid co-pays (for Medicare) for their multiple sclerosis (MS) drug, Copaxon. Payments were funneled through “purportedly independent foundations…
August 29, 2020
Twenty-Seven Skilled Nursing Facilities Controlled By Longwood Management Corporation to Pay $16.7 Million to Resolve False Claims Act Allegations
27 Skilled Nursing Facilities Controlled by Longwood Management Corp. to Pay $16.7 Million to Resolve Allegations of Inflated Medicare Bills The DOJ announced on July 13, 2020 that Longwood Management Corporation and 27 affiliated skilled nursing facilities (Longwood) - agreed to settled complaints that they submitted false claims to Medicare…
April 26, 2020
False Claim Filing Forces Reverse Mortgage Company to Settle Claim for $2.47 Million
Respa News reported on April 6, 2020 that a mortgage lender based in Tulsa, Oklahoma has agreed to pay $2.47 million to resolve claims, filed through the False Claims Act, that its predecessor company knowingly processed hundreds of Home Equity Conversion Mortgage (HECM) loans. These loans were insured by the…
April 26, 2020
Medical Company Agrees to Settle False Claims Act Charges for $1.85 Million
The District of Justice announced on March 12, 2020 that Sterling Medical Associates was settling charges by the DOJ that it violated the False Claims Act. The False Claims Act is a federal law that allows the government to seek repayment and penalties against anyone who submits false claims to…
April 26, 2020
The False Claims Act and the Public Disclosure Bar
Whistleblowers who file a lawsuit through their attorney may be entitled to a percentage of any recovery. The percentage of the reward depends on a variety of factors. Generally, whistleblowers may be entitled to up to 25% of the recovery if the US Department of Justice agrees to intervene. The…
April 17, 2020
Health Company Agrees to Settle False Claims Act Charges of Unnecessary Medical Services for $9.5 Million
The US DOJ announced on February 8, 2020, that Diversicare Health Services agreed to settle charges it violated the False Claims Act by submitting false bills to Medicare. The bills were for rehabilitation therapy services there weren’t necessary, weren’t reasonable, and weren’t performed by skilled personnel – according to the…