Whistleblower proves indispensable to government case

There’s recent news that Olympus Corp., which manufactures medical devices as well as cameras and industrial equipment, has agreed to pay $646 million as the result of a kickback lawsuit that may have only seen the light of day thanks to a brave corporate whistleblower just like those we represent at Kline & Specter, PC, in Philadelphia, Pennsylvania and across the country.

Whistleblowers on the rise

In recent years, the number of whistleblower cases in healthcare and pharmaceutical sectors has surged to unprecedented heights. These cases have proven to be a crucial implement for unearthing fraud against the government in healthcare, tax evasion, and other cases.

Trinity Industry’s Highway Guardrail sales suspended after whistleblower trial

Trinity Industries, an industrial manufacturing company based in Dallas, has halted shipments of its ET-Plus highway guardrail system following reports of deaths and injuries over allegedly faulty design changes. A federal whistleblower recently charged Trinity with changing the design of its guardrail system without informing regulators until several years later. The whistleblower case led to a $175 million jury verdict that could be tripled by a federal judge. The design change was made to the end caps of the guardrail system.

What is a Whistleblower Case?

If you have intimate knowledge of a fraudulent act against a government agency, you can come forward and file a whistleblower lawsuit. These types of suits are also known as qui tam lawsuits and are filed when an individual witnesses a company that is defrauding the government.

Medicare fraud whistleblower case settles for $35 million

Thanks to a whistleblower assisted in a lawsuit by Kline & Specter attorneys, an Arizona healthcare company has agreed to pay the federal government $35 million to settle a claim that it defrauded Medicare by submitting false claims for patient care. Carondelet Health Network was accused of filing the false claims for inpatient rehabilitation services at two hospitals it operated in Tucson. The legal action, unsealed recently by the U.S. Department of Justice, originated from allegations brought by a medical reimbursement specialist employed by Carondelet.

$6.2M settlement in NY tax whistleblower case

A medical imaging company that conducted business in New York and made millions in profits recently settled with the state for $6.2 million in a whistleblower case for alleged tax fraud. Lantheus Medical Imaging Inc. and its former parent company, Bristol-Myers Squibb, sold medical diagnostic equipment  from 2002-2006 but  evaded various business taxes during that time. The case was brought to light by a tax services provider who filed a whistleblower complaint under the New York False Claims Act in 2012. The act has been hailed as a valuable and powerful civil enforcement tool.

Fired college employee uses whistleblower lawsuit to get his job back, and a lot more

Chicago State University had fired its former legal counsel, James Crowley, for allegedly misusing school funds, including to pay for a trip to Hawaii to attend a conference. But Crowley charged that he was let go for reporting improprieties by the university to the attorney general, among them its demand that he withhold information under the Freedom of Information Act. The matter wound up in court after Crowley filed a whistleblower lawsuit that claimed he was fired for, basically, being a good citizen.

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