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Former CEO agrees to pay $20 Million to settle FCA allegations related to small business contracting fraud

Former CEO Luke Hillier of the Virginia-based defense contractor ADS, Inc., has agreed to pay the U.S. Government $20 million to settle alleged False Claims Act (“FCA”) allegations. United States ex rel....

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Store managers seek class action against Russell Cellular for unpaid overtime violations

Verizon wirelines retailer, Russell Cellular, Inc., has been sued in federal court for violations of the New Mexico Minimum Wage Act (“NMMWA”). The lawsuit involves claims by two former store managers who...

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Electrical connector manufacturer agrees to pay $11 million to resolve FCA allegations

ITT Cannon has agreed to pay $11 million to resolve alleged False Claims Act (“FCA”) allegations that it supplied electrical connectors to the military that had not been properly tested. These untested...

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Medicare provider to pay over $5 million to resolve FCA allegations

Beaver Medical Group L.P. (“Beaver”) and its physician, Dr. Sherif Khalil, have agreed to pay over $5 million to resolve alleged False Claims Act (“FCA”) allegations. According to the Department of Justice,...

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Reckitt Benckiser Group to pay $1.4 billion in FCA case

Consumer foods company Reckitt Benckiser Group, PLC (“RB Group”) has agreed to pay $1.4 billion to resolve civil and criminal allegations under the False Claims Act (“FCA”) regarding alleged false marketing of...

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Healthcare provider to pay $48 million to resolve whistleblower allegations

Encompass Health Corporation (“Encompass”), one of the nation’s largest operator of inpatient rehabilitation facilities (IRFs) has agreed to settle False Claims Act (“FCA”) allegations for $48 million.  The Department of Justice (“DOJ”)...

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Government intervenes in two whistleblower lawsuits

Two recent lawsuits filed in the U.S. District Court of the Middle District of Florida under the qui tam or whistleblower provisions of the False Claims Act (“FCA”) have prompted the United...

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DOJ intervenes in whistleblower complaint against Drug Maker for FCA allegations

Under the False Claims Act (“FCA”), individuals are allowed to sue for fraud on behalf of the United States and share in the recovery, if any. The act gives the government the...

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IBM settles FCA allegations for $14.8 million

Last week, IBM and Curam Software have agreed to pay $14.8 million to settle alleged False Claims Act (“FCA”) violations. The settlement was reached after IBM was accused of material misrepresentations to...

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Kansas Cardiologist agrees to pay $5.8 million to settle FCA allegations

A Wichita, Kansas Cardiologist has agreed to settle alleged False Claims Act (“FCA”) violations for $5.8 million. Dr. Galichia was alleged to have knowingly submitted false billings for surgical procedures in violation...

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Overtime Claims and Severance Agreements – What You Should Know

When a worker leaves a company, either voluntarily or involuntarily, it is not uncommon for the employer to ask them to sign a severance agreement.  Such documents often contain a clause that...

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District Court conditionally certifies FLSA case against Amazon

A Kansas federal district court recently conditionally certified an overtime case brought by engineers working at Amazon.  When there is one employee who has been wrongfully denied overtime without proper pay, there...

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Gas Marketer agrees to settle FCA allegations for $4.375 million

A recent settlement reached by a major oil and gas marketer, its employee and the government proves that third parties who do not directly do business or interact with government agencies are...

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Intermountain Healthcare abandons FCA case at the Supreme Court

Hospital chain Intermountain Healthcare agreed to settle a False Claims Act (“FCA”) case, which alleged it sought reimbursement for unnecessary heart procedures. This result eliminates an opportunity for the Supreme Court to...

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Software company agrees to settle FCA allegations for $22M

The Department of Justice announced a settlement of its allegations that a software development company, Informatica LLC violated the False Claims Act (“FCA”). The DOJ alleged in United States ex rel. Sullivan...

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Court certifies class of delivery drivers in Flowers Foods OT lawsuit

Another class action certification has been won by distributor-drivers who claimed they were misclassified as independent contractors and denied overtime pay. The distributors fought hard in their ongoing unpaid overtime compensation lawsuit...

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Supreme Court issues opinion on statute of limitations for qui tam lawsuits

When a current or former employee wants to file suit against their employer for fraudulent activity, what is the applicable time period in which to do so? Earlier this week, the U.S....

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1st Circuit switches big false claims award from one whistleblower to another

The First Circuit has issued an opinion on a significant False Claims Act whistleblower case and one of the claimants had a good day.  Millennium Health, a medical device company, reached a...

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How is Overtime Defined?

Overtime Definition I get calls from potential clients who want to know how overtime is defined and what sort of work constitutes overtime.  While some states have their own laws governing overtime,...

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Hospital CEO settles False Claims Act whistleblower case

Former CEO of Health Management Associates, LLC (HMA), Gary Newsome, agreed to pay the United States government $3.46 million to settle allegations that he caused HMA to knowingly submit false claims to...

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