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False Claims Act Archives

Government Sues Florida Ambulance Company, Alleging False Claims

When an employee blows the whistle on an employer and files a qui tam lawsuit on behalf of the government, the government can choose whether or not to join the lawsuit. If the government investigates the case and decides not to join, the whistleblower can still go ahead with the lawsuit and, if successful, receive a percentage of any amount that is recovered.

DaVita Will Pay Nearly $500 Million to Settle FCA Claim

DaVita Healthcare Partners, Inc. ("DaVita") is a large provider of kidney dialysis treatment in the United States. The medical giant, as part of its first quarter SEC filings, disclosed that it has allotted $450 million to settle a False Claims Act ("FCA") case. Two whistleblowers brought the suit against DaVita alleging that the company defrauded the government by overcharging the Medicare system. The plaintiffs alleged that DaVita used "larger-than-necessary medicine vials or unnecessarily spread medicine dosages across multiple treatments knowing that Medicare would pay for what it considered 'unavoidable' waste."1 The company's leadership was accused of creating a procedure for employees to provide dosages of the drug Venofer, which treats anemia in patients with kidney disease, "over several treatments instead of one to increase reimbursements."2

Court Denies Summary Judgment in MassMutual ERISA Litigation in Important Victory for Retirement Plans

On May 20, 2014, the Honorable Patti B. Saris, Chief Judge of the United States Disctrict Court for the District of Massachusetts denied Defendant's Motion for Summary Judgment in Golden Star, Inc. v. Mass Mutual Life Insurance Co., Civil Action No. 3:11-CV-30235-PBS (D.Mass.). In so holding, the Court specifically found that MassMutual was a fiduciary with respect to so-called revenue sharing payments because it retained the discretion to set its own compensation and treated revenue sharing payments as a form of compensation.