In the first two weeks of September 2011, the United States Department of Justice announced three significant settlements under the False Claims Act, which will result in the government’s recovery of nearly $165 million.
Although the settling companies operate in the health care industry, the settlements demonstrate the Department’s continuing reliance on the False Claims Act to recapture taxpayer dollars lost to fraud and abuse within any government funded program. In fact, in announcing these settlements, the Department specifically identified the False Claims Act as one of its most powerful tools in the effort to combat government fraud and abuse, and it noted that since January 2009, the Department’s total recoveries under the Act exceed $7.5 billion.
A summary of the three settlements follows:
All three of these settlements resulted from qui tam actions, which are actions initiated by private individuals (here, a recipient of services or the former employees of the settling companies) under the False Claims Act. In each case, the whistleblower collected a significant amount of the recovered funds, as allowed under the Act.
If you have questions about the False Claims Act or any of the Department’s priorities in this area, please visit the Health Litigation page on our Web site, or contact Brian Dillon (firstname.lastname@example.org, 612.632.3313) or Tom Johnson (email@example.com, 612.632.3207).
This article is provided for general informational purposes only and should not be construed as legal advice or legal opinion on any specific facts or circumstances. You are urged to consult a lawyer concerning any specific legal questions you may have.
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