The False Claims Act is a federal law that imposes liability on individuals and companies who defraud governmental programs. Many False Claims Act cases are initiated by people, also known as whistleblowers, who have firsthand knowledge of fraud against the government. Whistleblowers who report fraud under the False Claims Act are eligible to receive up to 30 percent of the total amount recovered by the government. Several recent cases highlight the important role played by whistleblowers in combating fraud under the False Claims Act.
Medical Equipment Whistleblowers Split $6.2 Million Award
The Department of Justice (“DOJ”) recently announced that it had reached a settlement of $37.5 million with a manufacturer of sleep apnea medical equipment in San Diego, California. This amount was recovered based on information provided by five separate whistleblowers who claimed that the company paid kickbacks to sleep labs, suppliers, and health care providers to sell its equipment. As a result of the settlement, the whistleblowers who filed False Claim Act complaints against the company will split an award of $6.2 million.
Medicare Fraud Whistleblower Earns Six-Figure Award
The DOJ also recently announced a settlement with a California medical center worth $1.41 million. This case involved allegations that the medical center charged Medicare for knowingly implanting medically unnecessary heart monitors into patients. The former employee of the medical center who initiated the case via a False Claims Act complaint will receive an award of nearly $250,000.
Whistleblowers to Receive Million-Dollar Awards
Finally, the DOJ announced that it executed a settlement agreement with the parent organization of a string of nursing homes for nearly $16 million. The case, which was initiated by two whistleblowers, alleged that the company overbilled Medicare and the Federal Employees Health Benefits Program for rehabilitation therapy services that were medically unnecessary. In its press release announcing the settlement, the DOJ noted that too much unnecessary rehabilitation therapy can harm patients, comparing the practice to overprescribing medications. As part of the False Claims Act settlement, the two whistleblowers will each receive over $1 million.
Contact a False Claims Act Attorney Today
Do you have information that may lead to the recovery of funds that were fraudulently obtained from the federal government? If so, you may be entitled to significant financial compensation for reporting this information. However, if you make any mistakes when you report this information, you run the risk of receiving nothing. Therefore, if you have knowledge that a person or entity has committed fraud, it is highly recommended that you contact a False Claims Act attorney for assistance with your claim. An experienced False Claims Act attorney will ensure that you cover all of your bases when reporting fraudulent activity under the False Claims Act, giving you your best chance at financial recovery. Please contact us today for a consultation.