Mallinckrodt Files for Bankruptcy After $275 Million in Settlements

Weekly Newsletter | November 6, 2020 | Subscribe

COVID-19 Related Fraud

----------------------------------------------------------------------------------- Shore News Network: Ridgeland Woman Caught Defrauding COVID-19 Unemployment Benefits A Mississippi woman was indicted and charged after an investigation found that unemployment insurance benefits from the State of Washington had been deposited into her account. It was revealed that they were deposited under other individuals’ names and insurance benefits were federally subsidized through the CARES Act in response to the COVID-19 pandemic.

The Signal: Santa Clarita man charged with $1.95M COVID-19 relief fraud A California man and his business partner have been charged on suspicion of defrauding the government of nearly $2 million in Paycheck Protection Program loans. The two men created businesses which they allegedly used to claim through the use of fake tax documents and false employee information.

Case Settlements & Opinions


Policy and Medicine: Mallinckrodt’s $275 Million in Settlements Results in Filing for Bankruptcy In September of 2019, Mallinckrodt announced that it would be paying a $15.4 million settlement to resolve two whistleblower suits alleging violations of the Anti-Kickback Statute, and the government is continuing to prosecute Mallinckrodt for additional allegations. Earlier this year, they also became the focus of Medicaid Rebate fraud allegation and will pay $260 million over the next 7 years. With over $275 million in settlements, Mallinckrodt’s financial standings have certainly dropped, and the company filed for bankruptcy protection on Oct 12.

Dept. of Justice: Medtronic to Pay Over $9.2 Million To Settle Allegations of Improper Payments to South Dakota Neurosurgeon Medtronic USA Inc. has agreed to pay $8.1 million to resolve allegations that it violated the False Claims Act by paying kickbacks to induce a South Dakota neurosurgeon to use certain Medtronic products. They also agreed to pay an additional $1.1 million to resolve allegations that they violated the Open Payments Programs for failure to accurately report the payments made to the neurosurgeon to the Centers for Medicare & Medicaid Services.

Dept. of Justice: Illinois-Based Charter School Management Company to Pay $4.5 Million To Settle Claims Relating To E-Rate Contracts Concept Schools agreed to pay $4.5 million to resolve allegations that it violated the False Claims Act by engaging in non-competitive bidding practices in connection with the Federal Communications Commission’s E-Rate Program. The E-Rate Program subsidizes eligible equipment and services to make internet access and internal networking more affordable for public schools and libraries.

Dept. of Justice: Memphis Physicians Agree to Pay More Than $340,000 for Alleged Overbilling Doctor Shoaib Qureshi, Doctor Imran Mirza, Memphis Primary Care Specialists, Lunceford Family Health Center, and Getwell Family Medicine agreed to pay $341,690 to resolve allegations that they violated the False Claims Act by knowingly charging Medicare for services rendered by nurse practitioners at the higher reimbursement rate for physician services.

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