False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
June 16, 2009. . ![]()
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Bone Growth Fraud?
The U.S. Department of Justice has issued subpoenas to medical device manufacturers Biomet, Orthofix, Smith & Nephew, and DJO Inc. All four companies are alleged to have price-gouged Medicare and Medicaid for bone-growth devices. The machines are sold for thousands of dollars a unit. >> To read more
DoJ Files on Mortgage Fraud
The Department of Justice has charged California-based Capmark Finance Inc. with violating the False Claims Act by making false statements on applications for federal mortgage insurance covering residential nursing homes. The lawsuit relates to a federal program under which the U.S. Department of Housing and Urban Development guarantees mortgage loans used to acquire healthcare facilities. >> To read more
WV Seeks $2 Billion from Lilly
West Virginia Attorney General Darrell McGraw is suing Eli Lilly for $2 billion under the state's Consumer Credit and Protection Act, arguing that the drug maker didn't adequately warn patients of the risks associated with Zyprexa, an atypical antipsychotic medication implicated in weight gain, diabetes and cardiovascular troubles. In January, Eli Lilly paid $1.4 billion to settle federal civil and criminal claims in a settlement that also included more than 30 states. Many of the states that refused to settle with Lilly are pursuing their own cases in court, seeking far larger sums. >> To read more
New Jersey University Pays $2 Million for Double Billing
The University of Medicine and Dentistry of New Jersey has agreed to pay $2 million to resolve a False Claims Act case alleging the school routinely double-billed Medicare. The school previously paid $1.4 million to settle a similar claim. >> To read more
Oklahoma Ortho Center
to Pay $3.5 Million
The Orthopedic and Reconstructive Center of Oklahoma has agreed to pay $3.5 million to settle a False Claims Act case which alleged the surgical center had filed false claims with Medicare, Medicaid and TRICARE/CHAMPUS for medical procedures never performed. >> To read more
Hawaiian Hospital Settles FCA
Hawaii's largest private hospital, Queen's Medical Center, has agreed to pay $2.5 million to settle two False Claims Act lawsuits which claimed the the hospital overcharged Medicare, Medicaid and TRICARE for health care services. >> To read more
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