Consumer Pockets $10 Million In Medicaid Whistleblower Suit
Recently, we published a blog post (see below) regarding expired patents and lawsuits brought under the federal False Claims Act (“Act”). In that post, we explained how a consumer may file a Qui Tam action -- Latin for a lawsuit filed by an individual on behalf of the government pursuant to the federal False Claims Act -- against a company manufacturing an item with an expired patent. We also pointed out that such a lawsuit allows the filer to keep half of any damages recovered on behalf of the government.
In another example of a consumer filing a claim under the False Claims Act, a speech therapist in New York, Hedy M. Cirrincione, triggered a federal investigation into claims that Jefferson County, New York, had improperly collected Medicaid reimbursement for services Ms. Cirrincione provided to disadvantaged children in several school districts. As a result of Ms. Cirrincione’s whistleblower suit -- brought under the federal False Claims Act -- the case settled for a record-breaking $540 million, with Ms. Cirrincione collecting $10 million. The settlement sets a record for a recovery for the Medicaid program, and is the seventh largest whistleblower suit in history.
In related news, Congress recently revised and strengthened certain portions of the federal False Claims Act, under which whistleblower suits are brought. The new bill effectively overturns parts of the Supreme Court's unanimous decision last year in Allison Engine Co. v. United States ex rel. Sanders, 128 S. Ct. 2123 (2008), by removing the "to get" and "by the Government" language in section 3729(a)(2) that the Court applied in order to limit liability and keep the False Claims Act from becoming an all-purpose fraud statute. The revised Act also includes a materiality requirement in the provisions that defines "material" as having a natural tendency to influence payment or approval of the claim, the "weaker" materiality standard which must be met to bring and win a whistleblower case. As such, it is now easier for consumers to file suits under the Act, prove fraudulent conduct, and win their case. Importantly, the revised False Claims Act also protects consumers from retaliation and discrimination if they file a whistleblower lawsuit.
Consumers who think, or have proof, that the U.S. government is being defrauded, should contact us to discuss their potential case. With the revised language inserted in the Act by Congress, the standard of proof for fraudulent conduct has been lowered and individuals filing whistleblower suits do not to have to fear that they will be retaliated or discriminated against by the corporation or entity defrauding the government. And individuals filing such cases may end up with an award of up to half of any damages collected.
If you know or suspect that a business, corporation, municipality, city and/or state are defrauding the U.S. government, please contact us to aid you in an investigation and to discuss your legal options.