Good News for Guilty Whistleblowers!

Want to be a whistleblower but worried your own wrongdoing will prevent it?  If so, Tuesday’s decision by a federal court in Texas should come as welcome news.  In that long-running False Claims Act case, the court rejected a move by defendant Omnicare to dismiss the case on the grounds of wrongdoing by the …

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Hospital Conversion to For-Profit Status Improves Health (i.e., Financial Health)

For years the debate has raged:  Does conversion of a nonprofit hospital to for-profit status result in a decline in clinical quality?  An improvement?  More efficient operations?  A decrease in the volume of indigent and minority patients? Researchers at Harvard decided to stop wondering and look at the …

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Third Circuit Tightens “Original Source” Requirement for Whistleblowers

Back in 2003 Karl Schumann filed a whistleblower suit alleging that as an executive with benefits company Medco, he learned that Bristol-Myers Squibb and AstraZeneca paid kickbacks to Medco to buy and recommend brand name drugs.  The federal government investigated for six years and decided not to …

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Seventh Circuit Reaffirms Worthlessness of Worthless Services Cases

In August the Seventh Circuit expressed its view that so-called “worthless services” cases don’t state a claim under the False Claims Act.  Last Friday the court reaffirmed its view by refusing to rehear the case en banc. The theory of a worthless services case is that a nursing home or other provider …

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And You Thought a One-Third Contingency Was High

On Tuesday a federal court in Illinois awarded fees of $200,000 to attorneys for a whistleblower in a False Claims Act action.  Not impressed?  Well, consider this: the whistleblower got a little less than $30,000.  Figured on a contingency basis, that’s an 87% fee. As usual, there’s more to it than …

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Hospital’s Extortion & Fraud Too Quick to Violate RICO

If a hospital’s extortion and wire fraud activity is brief enough, it can avoid RICO prosecution.  That’s one lesson in an October 2 decision by the federal court for the district of Idaho. Danielle Bennion and her co-plaintiffs filed a RICO (Racketeer Influenced & Corrupt Practices Act) action …

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