Judge Strikes Down Dept. of Education’s New “Gainful Employment” Rules On July 1, 2012 and July 11, 2012, The New York Times published two articles reporting that Judge Rudolph Contreras of Federal District Court overturned the Department of Education’s “gainful employment” rules aimed at for-profit colleges that leave students with huge debt loads, no credentials,...
Whistleblower Paid $9,243,251 For Exposing False Claims Scheme On June 7, 2012, the Department of Justice reported that it had recovered $34,234,263 from Orthofix Inc., a Texas-based manufacturer of medical devices, to settle allegations under the civil False Claims Act relating to the company’s sale of bone growth stimulator devices. The Justice Department awarded whistleblower Jeffrey Bierman $9,243,251...
IRS Tax Fraud Whistleblower Awarded $104 Million Philadelphia, PA September 12, 2012 – Whistleblower Attorneys for Bradley Birkenfeld, a jailed former Swiss banker, announced that the Internal Revenue Service (IRS) will award him a $104 Million as a tax whistleblower reward for detailed information he turned over to the U.S. government concerning the detailed inner...
For-Profit Colleges Are Wasting Public Funds On August 16, 2012, The Spokesman Review published an editorial which stated the for-profit colleges are wasting public funds.A couple interesting facts and quotes pulled from the editorial, include: Enrollment at for-profit colleges has exploded in the past 15 years as more people are drawn to the flexibility of...
For Profit Colleges Encouraged Fraud On August 4, 2010, The United States Government Accountability Office (GAO) released a report on For Profit Colleges entitled “FOR-PROFIT COLLEGES –Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices.”The GAO conducted an investigation and had GAO investigators pose as prospective students and apply for...
Sunoco Inc. Agrees To Pay $675,000.00 To Settle FLSA Action Egan Young, Attorneys-at-Law, is pleased to announce final approval of a $675,000.00 dollar settlement with Sunoco, Inc. to resolve a collective action lawsuit brought under the Fair Labor Standards Act (“FLSA”) on behalf of 488 current and/or former unionized operations and laboratory workers in Philadelphia,...
Government Settles $158 Million Mortgage Fraud Suit With Citigroup This past week, Citigroup Inc. came to a $158 million settlement with the Justice Department over the Mortgage division’s fraudulent loan origination and lending practices. Thanks to the work of a courageous whistleblower, the government was able to hold Citigroup accountable. The settlement here comes on...
Dava Pharmaceuticals Defrauds Medicaid of Millions This past week, Dava Pharmaceuticals Inc. reached an $11 million settlement with the Justice Department over False Claims Act allegations in their Medicaid prescription drug program. The allegations against Dava included underpayment of their rebate obligations under the Medicaid Prescription Drug Rebate program by mislabeling their products. Pharmaceutical companies...
Media Overlooks Defense False Claims Case In today’s world, false claims cases brought against companies that are worth millions of dollars are often overshadowed by those that are worth billions. This was certainly so with a recent case involving national security and defense issues. The $4.3 million settlement announced last month between Boeing and the...
Congress Exploring More Efficient Whistleblower Statutes On January 27th, Richard Miller, the Senior Labor Advisor to Congressman George Miller, held a conference call with several prominent qui tam attorneys to discuss the possibility of changes to the current statutes on private sector whistleblower and qui tam lawsuits. One of the participants was Brandon Lauria, an...