Whistleblower lawsuits – also known as Qui Tam lawsuits -- are on the rise as citizens help disclose cases of fraud against the government – and reap large rewards for their efforts. The litigation covers illegal activities ranging from tax evasion to health care fraud involving Medicare and Medicaid. Successful Qui Tam lawsuits have also been filed in cases involving, but not limited to, defense procurements, underpayment of royalties (such as oil, minerals and gas from public lands), brokerage firm fraud, computer supplier fraud and construction cases.
Since Qui Tam lawsuits can be complex, it is helpful to get representation from Qui Tam attorneys experienced in dealing with government agencies and major corporations. It is also important to file Qui Tam lawsuits as quickly as possible since the government uses a “first to file” rule, meaning that the first person who brings suit against an entity allegedly defrauding the government is entitled to the government reward.
Qui Tam cases involve various types of fraud against the government, including:
- Medicare Fraud
- Medicaid Fraud
- Tax Fraud
- COVID/Pandemic Relief Fund Fraud
- Pharmaceutical Billing Fraud
- Defense Contract Fraud
- Other Government Fraud
Kline & Specter lawyers represented a whistleblower in a case that resulted in a $35 million settlement with a healthcare system over alleged Medicare fraud – at the time the largest settlement of its kind in Arizona history. The whistleblower, a former employee of the non-profit healthcare system, was to receive a reward of nearly $6 million. (See article)
Our Qui Tam lawyers also represented a client in a case that settled for $10.19 million against New York-based Sorkin’s Rx, Ltd., a/k/a CareMed Pharmaceutical Services, for allegedly engaging in fraudulent practices in the sale of prescription medications to Medicare and Medicaid beneficiaries. The whistleblower’s reward was $1.85 million.
Kline & Specter Qui Tam lawyers represented a client in litigation that resulted in a $16.2 million judgment against Orthopaedic and Neuro Imaging LLC for submitting false claims for Medicare reimbursement. The decision by a federal judge in Delaware concluded the company administered contrast dye during MRI scans on patients without proper supervision by a physician, a violation of Medicare rules. The whistleblower, a former ONI employee, was to receive a $2.9 million reward under terms of the U.S. False Claims Act. (Read the government news release)
Also in 2018, our whistleblower lawyers represented a client in a case that resulted in the hospice company SouthernCare Inc. paying nearly $5.9 million for wrongly billing Medicare for unnecessary care. The government claimed that SourthernCare Inc. placed patients who were not terminally ill into hospice, then submitted claims for that more expensive treatment.
In a settlement announced by the government in 2019, our Qui Tam attorneys represented a pharmacist whistleblower who alleged that Walgreen Co. (“Walgreens”) submitted claims to Medicaid for stimulants such as Adderall, Ritalin, and Vyvanse without first verifying with the prescribing doctor that the medication was for medically appropriate treatment, as is required. Walgreen agreed to settle the Wisconsin case for $3.5 million.
In another case, Kline & Specter Qui Tam attorneys represented a whistleblower in a New York tax fraud case that resulted in a $6.2 million settlement, with the whistleblower receiving a reward of more than $1.1 million. (See news release) In other actions, our whistleblower lawyers represented a whistleblower whose allegations resulted in a California aerospace parts manufacturer paying the federal government $2.7 million over charges it falsely certified performing required inspections. The whistleblower, a company employee, was to receive a reward of $621,000. (Read the news release) Kline & Specter lawyers also filed a whistleblower lawsuit in which an Arizona community health system agreed to pay the United States $5.85 million to resolve claims it overbilled Medicare using inflated employee work hours. The whistleblower reward was $1.17 million. (See news release)
If you have information or evidence about fraud perpetrated against the government, you should call one of our whistleblower attorneys at 800-243-1100 for a free evaluation of the potential case.
Kline & Specter, based in Philadelphia and handling whistleblower cases throughout the nation, has more than 50 highly experienced attorneys, several of whom have worked as government prosecutors or won large verdicts and settlements against major corporations. Our whistleblower lawyers are well-equipped to assist citizens across the United States in the process of filing claims under the U.S. False Claims Act or various state laws. They can also help ensure that plaintiffs receive their fair rewards from successful civil actions.
Among Kline & Specter attorneys working on whistleblower lawsuits is Conor Lamb, a former congressman, federal prosecutor and decorated former Marine Corps major. Lamb won a number of high-profile cases as a military judge advocate and while a government prosecutor, including efforts that helped dismantle a major drug trafficking operation in western Pennsylvania. He earned both his bachelor’s and law degrees from the University of Pennsylvania.
Healthcare Fraud Qui Tam Cases
One of the most common types of Qui Tam lawsuits involves health care fraud by pharmaceutical companies, hospital corporations and clinical laboratories which bill the government, often through the Medicare and Medicaid programs, for drugs or services. In a recent case, our whistleblower lawyers helped secure an $800,000 settlement from a South Carolina ambulance company which defrauded the U.S. government by billing Medicare for transports that were not medically necessary. Kline & Specter filed a whistleblower lawsuit on behalf of the whistleblower in the case, clinical social worker Sandra McKee, who will receive a $160,000 reward under the federal False Claims Act. (news article) Learn more about reporting Medicare and Medicaid fraud.
Kline & Specter handles Qui Tam lawsuits on a contingent fee basis, meaning the law firm gets paid a percentage of a reward plus expenses if – and only if – a suit is successful. If there is no reward, the firm receives no remuneration, not even for expenses that may have been incurred.
Whistleblower lawsuits have flourished in recent years as they allow private citizens to sue on behalf of the government even though the individual has suffered no personal harm. The U.S. government has reaped tens of billions of dollars from Qui Tam lawsuits since 1986, when the law was bolstered, and whistleblowers have collected an average of roughly 16 percent – in some cases as much as 30 percent – of government recoveries.
Among the more famous Qui Tam cases, drug manufacturer GlaxoSmithKline agreed to pay $750 million in 2010 to settle allegations that it knowingly sold drugs with questionable safety. The whistleblower in that case, Cheryl Eckard, the company’s quality manager, was fired when she tried to address the issue. She later filed a Qui Tam lawsuit that exposed the practice. She was to receive a $96 million reward.
Kline & Specter has won many major verdicts and settlements in a variety of cases (see Major Victories).
Contact us for a free consultation concerning a whistleblower case in Pennsylvania, New Jersey, New York, Delaware or nationwide.