Lawyers at Beasley Allen continue to handle whistleblower lawsuits under the Federal False Claims Act and similar state laws. We have made these cases a top priority for the firm. I still find that lots of folks, including some lawyers, don’t fully understand whistleblower litigation. The False Claims Act allows private citizens to bring lawsuits on behalf of the United States to recover money owed to the government. The law provides citizen-plaintiffs, called “relators,” with powerful incentives – sometimes up to 30 percent of the amount recovered – to report instances of fraud against the federal government. The relator must have first-hand knowledge of the fraudulent activity.
Government healthcare programs, such as Medicare and Medicaid, are common targets of fraud. Studies have shown as much as 10 percent of Medicare and Medicaid charges are fraudulent. For example, in November a Tennessee company agreed to pay $25 million, plus interest, to the United States and State of Tennessee to resolve allegations that the company violated the False Claims Act by submitting false and upcoded home healthcare billings to Medicare and Medicaid. CareAll Management, based in Nashville, is one of Tennessee’s largest home health providers. The relator, Toney Gonzales, will receive more than $3.9 million as his share of the recovery.
Government contracts, particularly in the defense industry, are another area where fraud is prevalent. In September, several defense contractors, including BAE Systems, Inc., settled False Claims Act allegations that they provided substandard batteries used to power turrets atop Humvee vehicles. The whistleblower, who filed his suit in Minnesota, will receive a $990,000 reward for reporting the fraud.
For further information on whistleblower cases, call 800-898-2034 and ask for these lawyers who are on the team of lawyers who handle this litigation for the firm, Archie Grubb (Archie.Grubb@BeasleyAllen.com), Andrew Brashier (Andrew.Brashier@BeasleyAllen.com), Lance Gould (Lance.Gould@BeasleyAllen.com), or Larry Golston (Larry.Golston@BeasleyAllen.com), all lawyers in our Consumer Fraud Section.
Sources: Corporate Crime Reporter and Businesswire.com
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