April 3, 2024

Recent Developments in False Claims Act Cases: Insights and Impacts

In the United States, The False Claims Act stands as a pivotal measure for individuals to initiate qui tam lawsuits. Unveiling fraud within government operations can be intimidating, yet, thanks to the whistleblower’s courage, they are safeguarded. Berg & Androphy’s expertise shines through in their latest qui tam cases and other legal disciplines, demonstrating how, in partnership with the FCA, the whistleblower—the real hero—has been justly rewarded through settlements. The False Claims Act allows private individuals, regardless of their occupation or identity, to file qui tam lawsuits, knowing and proving that another party defrauded the government through a false claim(s). Hand in hand with the FCA, qui tam provision allows that same qui tam whistleblower to receive a portion of the funds recovered. This not only exposes the fraud and holds them accountable, but rewards, encourages, and protects the bravery of those who come forward.

False Claims Act Case Summaries: Highlighting Recent Settlements

Omnicare’s $21MM Settlement in Kickback and Medicaid Fraud Case

Over ten years ago, allegations surfaced against CVS-owned Omnicare, accusing the company of engaging in kickbacks and submitting fraudulent Medicaid claims for prescribing Remeron antidepressants. After years of investigation and litigation sparked by the courage of multiple whistleblowers, a settlement was recently achieved, marking a significant stride toward justice. These tam whistleblowers bravely asserted that Organon compensated long-term care pharmacies for prescribing these antidepressants. Berg & Androphy allocated millions in legal expenses to navigate the case to victory at the summary judgment phase. The extensive litigation, spanning more than a decade, ended in a settlement, highlighting the persistence and dedication of those seeking accountability. The $21 million settlement sends a clear message against kickbacks and fraud: such actions will be detected and have severe consequences, damaging reputation and trust in healthcare integrity.

Cornerstone Healthcare Group’s $21M Settlement in Medicare Fraud Case

“Worthless.” This damning verdict was the term used to describe the procedures preformed on elderly patients by Cornerstone Healthcare Group in Houston. The facility billed Medicare for services conducted by unqualified and unlicensed medical students—Jorge Guerrero, Joel Joselevitz, and Joseph Varon—thereby breaching state and federal laws. They violated state and federal law by submitting claims with the full knowledge that the individuals were not licensed or authorized to practice. Cornerstone falsely attributed these procedures to other doctors, who, it was later confirmed, were not even in the country at the time. As a consequence of these actions, the health care facility has been ordered to pay $21 million in settlements, with $4.3 million awarded to the whistleblower who brought these malpractices to light. The $21 million settlement reinforces the commitment to quality health care and honest Medicare billing, deterring future fraud.

PharMerica’s $4.9M Settlement for Kickbacks and False Claims

Organon’s Remeron takes the stage once more. PharMerica Corporation settled a False Claims Act case for $4.9 million, accused of receiving kickbacks from drug maker Organon USA Inc. for promoting two antidepressants. The lawsuit, initiated by two former Organon employees, alleged that PharMerica engaged in receiving discounts for pushing Remeron and Remeron SolTab from 1999 to 2005. This settlement follows others by Omnicare for $23 million and Organon for $31 million, ending a prolonged fourteen-year litigation. Though the settlement is not an admission of guilt by PharMerica, it highlights the critical role of whistleblowers in uncovering unethical healthcare practices. It also underscores the power of the False Claims Act in holding corporations accountable, ensuring the integrity of healthcare services.

The courageous voices of each whistleblower in these FCA cases drives home the seriousness and consequences of committing fraud against the federal government and undergoing false claims act investigations. The message is clear: there is zero tolerance for abuse and fraud within the United States government. With Berg & Androphy’s expert legal guidance, navigating FCA litigation as a qui tam plaintiff becomes an empowering experience. If you believe there’s fraud occurring against the federal government, it is important to take action. Turning to Berg & Androphy for help not only offers you the crucial guidance and protection you need, but also positions you to take a stand as a vigilant United States citizen: committed to safeguarding the integrity of our nation for the benefit of all.