False Claims Act News

Wall Street Whistleblowers Tip Off SEC — But Hear Nothing Back

Janice Shell likes to sniff out fraud. An art historian by training, she once spent her days digging through Renaissance archives in Italy. Now 74, retired and living in suburban Philadelphia, she pores over financial filings instead. She hunts for …

State Farm to Pay $100 Million to Federal Government for Hurricane Katrina Claims

State Farm Fire and Casualty Co. and two former claims-adjuster sisters, who more than 16 years ago filed a lawsuit claiming the insurer committed fraud against the government’s National Flood Insurance Program following Hurricane Katrina, have settled. According to documents …

Appeals Court Reverses Verdict Against Surgeon in Spinal Implant Kickback Case

A federal appellate court overturned a $5.5 million jury verdict against a Missouri orthopedic surgeon who is accused in a whistleblower lawsuit of taking kickbacks from a spinal implant distributor owned by his fiancee. A panel of the 8th Circuit …

Psychiatrist Paying $3M to Resolve False Billing Allegations

A Philadelphia psychiatrist and his wife agreed to pay $3 million to resolve allegations that they billed the federal workers’ compensation program for services that were not performed, US Attorney Jennifer Arbittier Williams’ office announced. Federal prosecutors accused Dr. Harry …

Insurers Tapped to Pay Growing Number of False Claims Act Actions

A growing number of False Claims Act investigations combined with recent court decisions that found insurers liable for the cost of settlements may spell trouble for commercial liability insurers. Policyholder attorney Geoffrey B. Fehling, with Hunton Andrews Kurth in Washington …

Pharma Company to Pay $12.6M to Settle Kickback Allegations

DOVER, Del. (AP) — A Delaware pharmaceutical company has agreed to pay $12.6 million to resolve allegations that it violated the federal False Claims Act by paying kickbacks. Department of Justice officials said in a news release Tuesday that the …

7th Circuit Lays Obstacle For Litigation Funders With False Claims Act Suits

A federal appellate court dealt a blow against litigation funding companies by ruling that the U.S. Justice Department can dismiss any False Claims Act lawsuits that it deems meritless without first proving that dismissal is justified. The 7th Circuit Court …

Novartis Settles U.S. Fraud Lawsuit Over Sham Speaker Programs

NEW YORK — Novartis AG agreed to pay $678 million to settle a civil fraud lawsuit brought by the U.S. government accusing the Swiss drugmaker of paying millions of dollars in kickbacks to doctors to induce them to prescribe its …

Expert Wins Settlement in Whistleblower Case against Cisco

BOSTON — A computer security expert won a rare payout in a whistleblower lawsuit he filed against Cisco Systems Inc. almost a decade ago, after he reported critical security flaws in Cisco video surveillance software used at major U.S. international …

What’s Next for State Farm After Hurricane Katrina Fraud Verdict is Upheld

Earlier this month, a whistleblower lawsuit verdict against State Farm was upheld by the U.S. Supreme Court. The high court rejected a challenge filed by State Farm on a lower court decision. The decision, according to Dan Himmelfarb, a Wash. …