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A Sampling of False Claims Act Settlements
The False Claims Act is a law designed to stop government fraud while assisting the whistleblowers who told the government about the wrong-doing.
Top Settlements Under False Claims Act
Fri Nov 26, U.S. Government - AP; Kansas City Star, November 27, 2004 LINK A sampling of top settlements under the False Claims Act, a law designed to stop fraud in government procurement contracts, and the whistleblowers who helped the government win the awards, and helping themselves as well. _In 2000, the Healthcare Company, formerly Columbia/HCA, pleaded guilty to criminal conduct and agreed to pay more than $840 million in criminal fines, civil penalties and damages for unlawful billing practices. Most of the money was recovered under the False Claims Act. Later, HCA agreed to pay $631 million to settle charges that it submitted false claims to Medicare and paid kickbacks to physicians. The settlements were the largest for fraud ever negotiated by the Justice Department (news - web sites). Whistleblowers Jim Alderson and John Schilling split $100 million of one settlement before legal fees and taxes and Alderson, in a related case, was given about $20 million. _In 2001, TAP Pharmaceutical Products Inc. paid $875 million to resolve criminal and civil charges in connection with its pricing and marketing of the cancer drug Lupron. Of that, $560 million was recovered under the False Claims Act. Whistleblower Doug Durand, former vice president of sales at TAP, received $77.9 million - and said he netted $42 million after paying lawyers and taxes. Another whistleblower, Joe Gerstein, then head of Tufts University health place, split a $17 million reward with the university. _In 2000, a national chain of kidney dialysis centers settled a fraud case with the Justice Department for $486 million, of which $375 million was recovered under the False Claims Act. The government said National Medical Care Inc. charged Medicare and other government health insurance programs for hundreds of needless tests for patients suffering from kidney disease. Mark Jones, Luis Cobo, Zach Bentley and John Lockwood were among company whistleblowers who split $65.8 million, officials said. _In 2004, Schering-Plough agreed to pay $346 million in July to settle charges that it paid a kickback to a health insurer to protect the price of its top selling allergy medication. Three whistleblowers - Charles Alcorn, Beatrice Manning and Raymond Pironti Jr. - were to be paid collectively $31 million Qui Tam, RICO Claims, and False Claims Act Cases Taxpayers Against Fraud Education Center: The False Claims Act Legal Center Getnick & Getnick Qui Tam Case False Claims Act Resource Center USA Whistleblower Internal Revenue Service Tax Fraud Alert See Also: Whistleblower Laws, People, and What Happened Next |