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The first qui tam case under the amended False Claims Act was filed in 1987 by an eye surgeon against an eye clinic and one of its doctors, alleging unnecessary surgeries and other procedures were being performed. [18] The case settled in 1988 for a total of $605,000. However, the law was primarily used in the beginning against defense contractors.
The $325 million settlement remains the largest ever paid by a defense contractor in a qui tam case. [42] Under the False Claims Act, which requires the government to award whistleblowers 15-25% of recoveries, the whistleblower Robert Ferro received $48.7 million for his participation in the case. [22]
The False Claims Act is unique because, while the federal government is always the "real party in interest" (as the one allegedly being defrauded), the statute allows a private plaintiff (known as a "relator" under the FCA) to sue qui tam (on the government's behalf) since the relator is "partially assigned" part of the government's legal injury.
The qui tam rules are part of the False Claims Act, a Civil War-era law that was enacted in response to reports of wholesale plundering by suppliers of military goods and ammo to the War Department.
Jones had first consulted lawyers in Washington who referred him to a scrappy plaintiffs’ law firm in Texas. That firm realized the potential qui tam value of cases claiming that the entire scheme— TMAP in Texas, PMAP in Pennsylvania—was a plot to extract millions in Medicaid “false claims” from state and federal treasuries. However ...
In 2002 Corapi filed a qui tam False Claims Act lawsuit against Redding Medical Center cardiologist Chae Hyun Moon after Moon informed Corapi that year that he was in immediate need of triple bypass surgery, but then told Corapi that the procedure could wait three weeks. Corapi decided to seek other medical advice; his second doctor determined ...
A Trenton federal judge has dismissed a False Claims Act suit against Sanofi and Bristol-Myers Squibb over anti-blood clot drug Plavix, citing a change in the composition of the partnership that ...
In a unanimous opinion written by Associate Justice Samuel Alito, the Court held that Wartime Suspension of Limitations Act only applies to criminal offenses. [2] The Court also held that qui tam lawsuits filed under the False Claims Act are no longer considered "pending" after they have been dismissed. [3]