Qui tam lawsuits brought by Phillips & Cohen have revealed a wide range of
fraudulent practices against the government, from false certification of missile parts
tests to billing Medicare for services never provided. Here are the outcomes of some of
the whistleblower lawsuits handled by Phillips, Cohen and their firm:
- 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.
- National Health Laboratories Inc. paid $100 million to settle a whistleblower lawsuit
for billing Medicare for unnecessary blood tests.
- A major defense contractor paid $82 million to settle a whistleblower lawsuit that
charged the contractor was falsely allocating commercial costs to government contracts.
- 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.
- The Singer Co. paid $50 million to settle a qui tam lawsuit that charged it submitted
false cost and pricing data to the Defense Department.
- MetPath Inc. and MetWest Inc. paid a total of $39.8 million to settle a whistleblower
lawsuit for billing Medicare for unnecessary blood tests.
- 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.
- FMC Corp. paid $13 million to settle a lawsuit that alleged the company had overbilled
the government by inflating its research costs.
- SmithKline Beecham Clinical Laboratories Inc. paid $13 million to settle whistleblower
charges that it had billed the government for blood tests that hadnt been ordered.
- CSX Transportation paid nearly $6 million to settle claims that it had overcharged the
U.S. for railroad crossing maintenance.
- 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.
- CoreStates Financial Services paid $3.4 million to settle a qui tam lawsuit that said
Meridian Securities, which it had acquired, had charged excessive mark-ups for Treasury
securities sold in connection with "advance refunding" transactions and
improperly "burned" the yield by pocketing excess profits rather than giving
them to the federal government.
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