Technology

A settlement has been reached in a whistleblower class action lawsuit brought against GE Healthcare Inc regarding a company it acquired in 2004, Amersham Health Inc.  Amersham is accused of causing Medicare to make overpayments by providing false or misleading information.

The whistleblower will receive $5.1 million from the government’s recovery.

The whistleblower lawsuit, filed in 2006, alleged that Amersham Health provided false or misleading information to Medicare regarding the number of doses available from vials, causing Medicare to pay for Myoview at artificially inflated rates. Myoview is distributed in multi-dose vials of powder. In a process known as reconstitution, nuclear pharmacies mix the powder with a radioactive agent to prepare individual doses that are injected into patients as part of the cardiac imaging procedures. Certain Medicare payment rates for Myoview were based, in part, on the number of doses available from vials of Myoview.

A settlement has been reached in a whistleblower class action lawsuit brought against Medtronic Inc who is accused of using physician payments related to post-market studies and device registries as kickbacks to induce doctors to implant the company’s pacemakers and defibrillators.

The settlement resolves allegations contained in two whistleblower lawsuits. The whistleblowers will receive payments totaling more than $3.96 million from the federal share of the recovery.

The United States alleged that Medtronic caused false claims to be submitted to Medicare and Medicaid by using two post-market studies and two device registries as vehicles to pay participating physicians illegal kickbacks to induce them to implant Medtronic pacemakers and defibrillators. Although Medtronic collected data and information from participating physicians, each of the studies and registries required a new or previous implant of a Medtronic device in each patient, and in each case Medtronic paid participating physicians a fee ranging from approximately $1,000 to $2,000 per patient. The United States contends that Medtronic solicited physicians for the studies and registries in order to convert their business from a competitor’s product and/or persuade the physicians to continue using Medtronic products.

A $10.4 Million penalty has been issued for violations of the Act to Prevent Pollution and felony obstruction of justice charges against Columbia Shipmanagement (Deutschland) GmbH (CSM-D), a German corporation, and Columbia Shipmanagement Ltd. (CSM-CY), a Cypriot company.

According to the sentence details, $2.6 million of the penalty will be directed to the National Fish and Wildlife Foundation to fund community service projects selected to help restore the coastal environment of New Jersey and Delaware hit by Hurricane Sandy.  The remaining $7.8 million is designated as a criminal fine. 

The shipping firms admitted that four of their ships - three oil tankers and one container ship - had intentionally bypassed required pollution prevention equipment and falsified the oil record book, a required log regularly inspected by the U.S. Coast Guard.  The case is the largest vessel pollution settlement in either New Jersey or Delaware. 

The companies previously pleaded guilty before U.S. District Judge Susan D. Wigenton on March 21, 2013, to six counts involving three vessels in New Jersey and four counts involving one ship in Delaware.  The counts consist of violations of the Act to Prevent Pollution from Ships for failing to maintain an accurate oil record book, obstruction of justice and making false statements.

The Delaware investigation began in October 2012 after several crew members of the M/T Nordic Passat provided the Coast Guard with a thumb drive containing photographs and video showing how illegal discharges had been sent overboard through the ship’s sewage system.

The investigation into the M/T King Emerald was launched on May 7, 2012, after several crew members provided cell phone photos and other evidence to Coast Guard officers conducting a routine inspection. 

The charges involving the M/V Cape Maas stem from a whistleblower report to the Coast Guard when the ship visited the port in San Francisco.  The whistleblower provided a video showing the operation of the oily water separator pumping overboard without the use of the oil content monitor to detect and prevent oil from being illegally discharged.    

Violations on a fourth ship, the M/T Cape Taft, which was anchored in New York waters and destined for New Jersey, were uncovered just weeks before the March plea, after the ship disclosed problems to CSM-D.

A settlement has been reached in a whistleblower class action lawsuit brought against Science Applications International Corporation who is accused of charging inflated prices under grants to train first responder personnel to prevent and respond to terrorism attacks.

The whistleblower's share of the recovery has not been determined. 

The case, filed in February 2012, alleged that SAIC’s cost proposals falsely represented that SAIC would use far more expensive personnel to carry out its efforts than it intended to use and actually did use, resulting in inflated charges to the United States.

Between 2002 and 2012, the New Mexico Institute of Mining and Technology (New Mexico Tech) received six federal grants from the Department of Justice, the Department of Homeland Security, and the Federal Emergency Management Agency to train first responder personnel to prevent and respond to terrorism events involving explosive devices.  New Mexico Tech awarded subgrants to SAIC to provide course management, development, and instruction.

A settlement has been reached to resolve False Claims Act allegations against NI Teijin Shoji Co Ltd, aka NI Teisho of Japan, and an American subsidiary, NI Teijin Shoji (USA) Inc. They are accused of importing and selling defective Zylon fiber which was used as the key ballistic material in bulletproof vests.

This settlement is part of a larger investigation of the body armor industry’s use of Zylon in body armor. The United States previously has settled with eight other participants in the Zylon body armor industry for more than $59 million. 

The Teijin companies imported the fiber on behalf of the Zylon manufacturer, Toyobo Co. Ltd. of Japan. The United States alleged that the Teijin companies were aware that the fiber degraded quickly over time and that this degradation rendered bulletproof vests containing woven Zylon unfit for use. The government further alleged that, despite this knowledge, the Teijin companies did not inform the United States of any degradation concerns or stop selling Zylon fiber for use in ballistic applications. Rather, Teijin personnel actively participated in the marketing of the Zylon fiber and downplayed the extent of the degradation problem. Furthermore, for a period of time in 2002, Teijin purchased Zylon fabric back from the Canadian weaver to whom it had sold the fiber for weaving, and sold it directly to American body armor manufacturers, after the weaver itself refused to sell the Zylon fabric due to its fears of potential liability.

A settlement has been reached in a whistleblower class action lawsuit brought against PC Specialists Inc., doing business as Technology Integration Group (TIG), who is accused of inflating prices of computers sold through another company to the National Nuclear Security Administration (NNSA).

The whistleblower's recovery amount has not been determined.

The case was filed in 2014 and alleged that from 2003 to 2013, TIG sold Dell computers to Sandia Corporation for resale to the United States under Sandia’s contract with the NNSA.  The NNSA purchased the computers for use at Sandia National Laboratories.  The United States alleged that TIG knowingly inflated the amounts it charged Sandia by failing to give credits for rebates and discounts it received from Dell as required by its contract and causing false claims to the government for the inflated prices.  

In a separate but related matter, in April 2015, TIG entered into a non-prosecution agreement with the U.S. Attorney’s Office of the District of New Mexico regarding allegations that three employees in TIG’s Albuquerque branch office engaged in a scheme to defraud the United States by inflating the amounts it charged Sandia for computers.  The non-prosecution agreement in that matter required TIG to terminate the employment of the three employees in its Albuquerque branch office – a vice president, a senior account executive and an accounts executive – who participated in and profited from the scheme.  The non-prosecution agreement also required TIG to retain and pay for an independent monitor selected by the U.S. Attorney’s Office who is responsible for monitoring TIG’s compliance with the agreement, and TIG policies, procedures and training relating to federal government contracts over the agreement’s three-year term. 

A settlement has been reached in a whistleblower class action lawsuit brought against Hewlett-Packard Co who is accused of defrauding the General Services Administration (GSA) and other federal agencies.

The whitsleblowers' recovery amount was not disclosed.

The allegations made were from a whistleblower case that was originally filed in 2004.  The United States alleged that HP knowingly paid kickbacks, or “influencer fees,” to systems integrator companies in return for recommendations that federal agencies purchase HP’s products.  The settlement also resolves claims that HP’s 2002 contract with the GSA was defectively priced because HP provided incomplete information to GSA contracting officers during contract negotiations. 

A settlement has been reached to resolve False Claims Act allegations against Lincoln Fabrics Ltd, and its American subsidiary.  They are accused of knowingly selling the government defective products.

In October 2009, the United States filed suit against Lincoln for violations of the False Claims Act and related claims. The $4 million settlement resolves this lawsuit.

The United States allegations are in relation to Lincoln Fabrics Ltd's role in the weaving of Zylon fabric used in the manufacture and sale of defective Zylon bullet-proof vests.

Using Zylon fiber manufactured by Toyobo Corp., Lincoln wove ballistic fabric for the body armor industry. Lincoln’s woven Zylon fabric was used in the manufacture of Zylon bullet-proof vests sold by several companies, including Second Chance Body Armor Inc., First Choice Armor Inc. and Point Blank Body Armor Inc. These vests were purchased by the United States, and by various state, local, and/or tribal law enforcement agencies, who were partially reimbursed by the United States.

The United States alleged that the Zylon in these vests lost its ballistic capability quickly, especially when exposed to heat and humidity. The United States further alleged that Lincoln was aware of the defective nature of the Zylon by at least December 2001, but continued to sell Zylon for use in ballistic armor until August 2005, when the National Institute of Justice issued a report that Zylon degraded quickly in ballistic applications. At that time, all American body armor manufacturers stopped using Zylon in body armor.

A settlement has been reached in a whistleblower class action lawsuit brought against AT&T Missouri (formerly known as Southwestern Bell Telephone L.P.), who is accused of engaging in non-competitive bidding practices for Federal Communications Commission contracts.

The whistleblower will receive a $195,000 share of the government's settlement.

Originally filed in 2006, the United States alleged that the Company violated the False Claims Act in connection with the Federal Communications Commission's E-Rate program. 

The E-Rate program, which Congress created in the Telecommunications Act of 1996, provides funding for needy schools and libraries to connect to and utilize the Internet. Under the program, which is supported by fees collected from telephone users, schools apply for funds to pay for hardware and monthly connectivity service fees.

The government's complaint asserted AT&T Missouri provided false information to the E-Rate program and otherwise violated the program’s requirements by engaging in non-competitive bidding practices for E-Rate contracts. The United States further alleged that AT&T Missouri employees colluded with officials in the Kansas City, Mo., School District to award contracts to the company, extended contracts in violation of E-Rate rules and provided meals and other inducements to school district employees.

A settlement has been reached in a whistleblower class action lawsuit brought against Endoscopic Technologies Inc (Estech) who is accused of marketing its medical devices for uses other than what is approved by the U.S. Food and Drug Administration (FDA).

The whistleblower will receive $210,000 as a recovery reward.

The case was originally filed by a whistleblower.  The United States' complaint alleged Estech marketed its medical devices to treat atrial fibrillation (the most common cardiac arrhythmia or abnormal heart rhythm), a use that is not approved by the FDA). The government also alleged that Estech promoted expensive heart surgeries using the company’s devices when less invasive alternatives were appropriate, advised hospitals to up-code surgical procedures using the company’s devices to inflate Medicare reimbursements, and paid kickbacks to healthcare providers to use its devices. The United States asserted that by engaging in this conduct, Estech knowingly violated the Food, Drug and Cosmetic Act and caused the submission of false and fraudulent claims in violation of the False Claims Act.