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Over the previous months, the United States has intervened in multiple whistleblower cases involving unnecessary medical testing conducted by clinical laboratories and health care providers in several states. These cases demonstrate not only the increased scrutiny with which the DOJ has approached medical testing fraud under the False Claims Act (FCA) but also the vital
The Department of Justice (DOJ) recently released its 2021 False Claims Act (FCA) statistics. A near-record year, the DOJ reported over $5.6 billion recovered in FCA settlements and judgments.
The DOJ’s year-end review presents an excellent opportunity to look back to some of 2021’s most notable FCA cases brought by whistleblowers.
DOJ Announces $5.6 Billion Recovered in False Claims Act Cases Last Year–$1.6 Billion From Whistleblowers
The DOJ recently reported that it obtained more than $5.6 billion in FCA settlements and judgments last year, the second most ever in a year. Over $1.6 billion of this amount stemmed from lawsuits filed by whistleblowers. In total, whistleblowers filed 598 qui tam suits in 2021, and the government paid out over $237 million to whistleblowers.
Private equity firms are facing increasing scrutiny under the False Claims Act (FCA). Recently, the Massachusetts Attorney General announced the largest reported healthcare fraud settlement against a private equity firm, amounting to $25 million. The case was brought under the qui tam provisions of Massachusetts’s FCA. Earlier this year, the DOJ reported a $15.3 million
Recent trends in False Claims Act litigation show high rates of settlement, increases in damage awards, and a high prevalence of health care defendants. At Price Armstrong, we think these trends indicate a future push to hold health care fraudsters accountable through whistleblower False Claims actions.
Whistleblower Gets $24 Million in First Ever Award From National Highway Traffic Safety Administration
The National Highway Traffic Safety Administration recently awarded its first-ever whistleblower award to a former Hyundai safety engineer who brought allegations of faulty engine designs against Hyundai and Kia. Kim Gwang-ho, the whistleblower, received $24.3 million for reporting the defective engines.
The False Claims Amendment Act of 1986 recently celebrated its 35th anniversary. This monumental law helped revitalized the Civil War-era False Claims Act to help better prevent fraud through the use of private whistleblowers.
The DOJ’s recently announced Civil Cyber-Fraud Initiative seeks to revitalize the False Claims Act and empower whistleblowers to eliminate new and emerging forms of cyber-fraud.
Defense Contractor Hit with Potentially More than $100 Million in Damages Following Huntsville Jury Verdict
A recent Huntsville jury verdict is sending a clear message to defense contractors across the nation: fraudulent defense contracts with the U.S. are likely to result in harsh consequences. On September 24, 2021, a federal court jury found a defense contractor liable for fraudulently inducing the U.S. Army into military contracts with Saudi Arabia, El
Whistleblowers exposed Mallinckrodt for violating The Federal Anti-Kickback Statute, alleging that from 2009-2013 the company used lavish meals and entertainment to motivate doctors to prescribe Mallinckrodt drugs. This violation of the False Claims Act resulted in a $15 million settlement.