More than $2.6 billion has been returned to the U.S. Treasury as a
result of qui tam lawsuits brought by whistleblowers represented by
Phillips & Cohen attorneys. Here are the outcomes of some of those
qui tam cases:
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TAP Pharmaceuticals paid $875 million to settle criminal charges
and two qui tam lawsuits, including one brought by Dr. Joseph Gerstein
and Tufts Associated Health Maintenance Organization. They were
represented by Phillips & Cohen. It was the largest health care
fraud settlement ever paid to the U.S. Treasury. The government
and whistleblowers alleged that the company had paid illegal kickbacks
to doctors to prescribe one of its drugs.
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HCA Inc., the nation's largest for-profit healthcare provider,
paid $631 million to settle three qui tam lawsuits, including two
brought by whistleblowers represented by Phillips & Cohen. Two
years earlier, HCA had paid $840 million to settle criminal charges
and other qui tam lawsuits. That agreement included $92 million
to settle another whistleblower lawsuit brought by Phillips &
Cohen clients.
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Wall Street investment banking firms paid more than $200 million
to settle allegations that they defrauded the federal government
by overpricing securities sold in connection with certain municipal
bond transactions, a practice known as "yield burning."
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Teledyne Inc. paid more than $115 million to settle two whistleblower
lawsuits involving false certification of test results and padding
estimates on sole source contracts.
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Northrop Grumman paid $111.2 million to the federal government to settle a
whistleblower lawsuit alleging that TRW Inc., which it had recently
acquired, padded bills submitted to the government under space and
technology contracts.
National Health Laboratories Inc. paid $100 million to settle a
whistleblower lawsuit for billing Medicare for unnecessary blood tests.
Quorum Health Group Inc. paid $85.7 million to settle a whistleblower
lawsuit that alleged it had systematically defrauded Medicare for
years by filing fraudulent Medicare "cost reports."
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A major defense contractor paid $82 million to settle a whistleblower
lawsuit that charged the contractor was falsely allocating commercial
costs to government contracts.
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General Electric paid $59.5 million to settle a qui tam case alleging
that company executives and an Israeli general conspired to divert
foreign military aid money.
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The Singer Co. paid $50 million to settle a qui tam that charged
it submitted false cost and pricing data to the Defense Department.
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MetPath Inc. and MetWest Inc. paid a total of $39.8 million to
settle a whistleblower lawsuit for billing Medicare for unnecessary
blood tests.
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Teledyne Systems Co. paid $13.95 million to settle a case involving
whether Teledyne was properly allocating, between the government and
commercial customers, indirect costs relating to calibration services.
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FMC Corp. paid $13 million to settle a lawsuit that alleged the
company had overbilled the government by inflating its research costs.
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SmithKline Beecham Clinical Laboratories Inc. paid $13 million
to settle whistleblower charges that it had billed the government
for blood tests that hadn't been ordered.
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KPMG paid $9 million to settle a qui tam lawsuit that alleged the
firm helped HCA, the nation's largest healthcare provider, prepare
and later conceal fraudulent claims in Medicare "cost reports"
that cost the program millions of dollars.
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CSX Transportation paid nearly $6 million to settle claims that
it had overcharged the U.S. for railroad crossing maintenance.
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Omnicare Inc. paid $5.3 million to settle a qui tam case and civil
charges alleging that a subsidiary had engaged in Medicaid fraud by
taking the unused medicine of dead nursing home patients and selling
it back to Medicaid for other patients.
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Genesee Valley Cardiothoracic Group paid $2 million to settle a
whistleblower lawsuit that charged it illegally billed Medicare for
services.