Below is a list of successful whistleblower cases, some of which resulted in significant qui tam whistleblower awards under the False Claims Act and other statutes. These cases are a global list of settlements and judgments under various whistleblower statutes and amongst some of the best qui tam law firms in the country, including, but not limited to Brown, LLC. Past results don’t guarantee future success and your case will depend on your particular facts and circumstances.
By their very nature some qui tam cases are confidential and the actual whistleblower reward is not disclosed. In those cases the whistleblower award will be imputed using the maximum possible award and sometimes an average award or a whistleblower award range.
$16.65 Billion Settlement. August 21, 2014. District of New Jersey.
Bank of America (BoA) reached a $16.65 billion settlement to resolve allegations that it failed to disclose key facts about its residential mortgage-backed securities, leading to massive losses for investors and homeowners. $1 billion from the settlement was paid pursuant to the False Claims Act in relation to BoA’s origination and sale of defective residential mortgage loans. The three whistleblowers who filed qui tam lawsuits could have cumulatively received up to $250 million in awards.
$3 Billion Plea and Settlement. Juy 2, 2012. District of Massachusetts
Global pharmaceutical titan GlaxoSmithKline LLC (GSK) pled guilty and agreed to pay $3 billion to resolve allegations that it unlawfully promoted prescription drugs, failed to report safety data, and engaged in false price reporting. $2 billion of this payment consists of GSK’s civil liability to the federal government under the False Claims Act, as well as to multiple states. It was alleged that GSK promoted drugs for unapproved, non-covered uses through issuing misleading claims. The federal government also alleged that GSK paid kickbacks to providers to induce the prescription of certain drugs.
$2.3 Billion Healthcare Fraud Settlement. September 2, 2009. District of Massachusetts. Eastern District of Pennsylvania. Eastern District of Kentucky.
Pharmaceutical giant Pfizer Inc. and its subsidiary paid $2.3 billion to resolve criminal and civil liability resulting from its illegal promotion of pharmaceutical products, including off-label promotions and kickbacks to induce prescriptions. Pfizer misbranded and promoted drugs for unapproved uses and dosages that the FDA specifically declined to approve due to safety concerns. Pfizer paid $1 billion to resolve allegations under the False Claims Act. Six whistleblowers who filed lawsuits in three jurisdictions received more than $102 million in awards.
$2.2 Billion Settlement. November 4, 2013. Eastern District of Pennsylvania. District of Massachusetts. Northern District of California.
Pharmaceutical powerhouse Johnson & Johnson (J&J) paid more than $2.2 billion to resolve claims that it promoted prescription drugs for off-label use, and paid kickbacks to physicians and a long-term care pharmacy. $1.72 billion of this payment is allocated to civil settlements under the False Claims Act and state analogues. Multiple groups of whistleblowers were responsible, and rewarded for, the civil settlement. The whistleblowers in the Eastern District of Pennsylvania received $112 million; those from the District of Massachusetts received $27.7 million; and the whistleblower in the Northern District of California received $28 million.
$900 Million False Claims Act Settlement. June 29, 2006. Central District of California; Northern District of Alabama; Eastern District of Louisiana; Eastern District of Missouri; Eastern District of Pennsylvania; and Western District of Tennessee.
In perhaps the largest False Claims Act settlement to date, Tenet Healthcare, one of the nation’s largest health care chains, settled Medicare Fraud and Medicaid Fraud allegations regarding inflated health care charges, billing for services not rendered, upcoding, and kickbacks.
False Claims Act Whistleblower Award of up to 25%, or $225 million.
$875 Million Pharmaceutical Settlement. October 3, 2001. District of Columbia. District of Massachusetts.
TAP Pharmaceutical Products Inc. agreed to pay $875 million to resolve criminal and civil liabilities stemming from its fraudulent drug pricing and marketing scheme. TAP was accused of violating the “best price” rule and providing kickbacks to physicians and other customers to induce prescriptions. TAP paid $559 million in civil penalties to resolve its liability under the False Claims Act. The two whistleblowers who filed qui tam lawsuits received approximately $95 million in awards.
$650 Million False Claims Act Settlement. January 2008. Eastern District of Pennsylvania, Eastern District of Louisiana.
Drug manufacturer Merck paid $650 million dollars to resolve allegations that it engaged in kickbacks to induce prescriptions and further violated the “best prices” rule. The pharmaceutical “best prices” rule under the Medicaid Rebate Statute provides that the government is entitled to the same discounted pricing that other purchasers enjoy. The government rejected Merck’s defense that the pricing discounts were “nominal.” Merck allegedly sent kickbacks to physicians and other providers in the form of payments for “training,” “market research,” or “consultation, when in fact at best superficial work was done. The government alleged that Merck used these fake assignments and associated titles to funnel money to providers to induce prescriptions.
The total eligible False Claims Act Whistleblower Award was $130 million. In fact, one whistleblower received $44.69 million from the federal share of the settlement amount and an additional $23.5 million from the states’ recoveries. The other whistleblower was eligible for a comparable amount that may have been discounted due to the first-to-file rule.
$631 Million False Claims Act Settlement. June 26, 2003. District of Columbia.
HCA Inc., a major hospital chain, paid a total of $631 million in criminal and civil penalties to resolve allegations that it defrauded Medicare, Medicaid, and TRICARE through false cost reports, kickbacks in exchange for patient referrals, and billing for unallowable costs. Whistleblowers filed nine qui tam lawsuits against HCA and received a combined $151 million as their rewards.
$614 Million Mortgage Loan Settlement. February 4, 2014. Southern District of New York.
P Morgan Chase paid $614 million to resolve claims that it approed thousands of Federal Housing Administration and Veterans Affairs loans that were not eligible for FHA and VA insurance respectively due to failing to meet applicable agency undewriting requirements. JP Morgan admitted that it failed to inform the FHA and VA of such defects when internal audits discovered 500 loans that never should have been submitted for FHA and VA insurance. JP Morgan’s false certifications of underwriting requirements caused the FHA and VA to sustain substantial losses when the unqualified loans failed.
The private whistleblower who filed a qui tam lawsuit could have received up to $153 million as an award.
$513 Million False Claims Act Settlement. October 2016. U.S. ex rel. Williams v. Health Management Associates Inc., No. 3:09-cv-00130 (M.D. Ga.) and U.S. v. Atlanta Medical Center, Inc. No. 16-cr-00350 (N.D. Ga). Middle District of Georgia, Northern District of Georgia.
Almost a decade later after Tenet Healthcare’s $900 million Medicare and Medicaid fraud settlement, Tenet added another $513 million dollar False Claims Act Settlement for allegedly setting up sham companies to funnel Medicare patients to its coffers in violation of the Anti-Kickback Statute.
A whistleblower whose efforts led to this settlement could have received an award of up to $84.43 million.
$438 Million False Claims Act Settlement – of $1.4 Billion Dollar Total Settlement. January 2009. Eastern District of Pennsylvania: United States ex rel. Rudolf, et al., v. Eli Lilly and Company, Civil Action No. 03-943 (E.D. Pa.); United States ex rel. Faltaous v. Eli Lilly and Company, Civil Action No. 06-2909 (E.D. Pa.); United States ex rel. Woodward v. Dr. George B. Jerusalem, et al., Civil Action No. 06-5526 (E.D. Pa.); and United States ex rel. Vicente v. Eli Lilly and Company, Civil Action No. 07-1791 (E.D. Pa.)
Drug Manufacturer Lilly Pharmaceuticals paid $1.4 Billion to address charges that it promoted Zyprexa for off-label uses. $438 million of the settlement was distributed to the federal government as a civil settlement under the False Claims Act, half a billion to a criminal fine, and $361 million went to the states that participated in the agreement.
This settlement resulted in a False Claims Act Whistleblower Reward of roughly $87.6 million on the Federal False Claims Act, plus the potential for an additional Whistleblower Award of roughly $72 million if the states’ recovery was imputed to the whistleblowers, for a total of roughly $150 million in potential whistleblower recovery.
$114 Million False Claims Act Judgment. May 23, 2018. District of South Carolina
The owner of a blood testing laboratory and two conspirators, were found liable for multiple violations of the Anti-Kickback Statute, for paying physicians kickbacks for ordering blood tests. After a 12-day jury trial, a judgment was entered against them for over $114 million. This judgment was affirmed on appeal by the U.S. Court of Appeals for the Fourth Circuit.
$90 Million False Claims Act Settlement. August 30, 2021. United States ex rel. Ormsby v. Sutter Health, et al., No. 15-CV-01062-LB (N.D. Cal.). Northern District of California.
Sutter Health, a major health care services provider based in California, paid $90 million to resolve allegations that it knowingly submitted unsupported diagnosis codes, causing inflated payments to be made from the Medicare Advantage program.
The whistleblower who filed this case could have received up to 25%, or $22.5 million, from this settlement. In addition, the whistleblower could receive additional awards from pursuing additional claims that the government did not intervene on.
$13.67 million False Claims Act Settlement. June 14, 2022. Southern District of Texas.
Kellogg Brown & Root Services Inc. settled False Claims Act allegations that they rigged the contract bidding process for, and received kickbacks from subcontractors for the Logistics Civil Augmentation Program (LOGCAP) III contract, under which KBR was required to provide logistics support to U.S. Army forces in Iraq.
$5.2 Million False Claims Act Settlement. June 2, 2022. Defendants Numet Machining Techniques, LLC (“Numet”), Numet Industries, Inc., KCO Numet, Inc., and Kidd & Company, LLC (collectively the “Numet Entities”). District of Connecticut.
Aerospace manufacturer Numet Machining Techniques settled allegations that it falsely certified itself as a small business and thereby improperly obtained small business contracts for which it was ineligible.
Although the government did not identify whether a whistleblower was involved, a whistleblower could have received a False Claims Whistleblower Award of 15-30% of the government’s recovery, or $780,0000 to $1,560,000.
$4.6 Million False Claims Act Settlement. June 06, 2022. Massachusetts ex rel. Collins, et al. v. Molina Healthcare, Inc., et al. No. 3:16-cv-30177-MGM (D. Mass.) District of Massachusetts
Pathways of Massachusetts, a former Massachusetts outpatient behavioral health provider along with its parent company Molina Healthcare, Inc., will pay $4.6 million to resolve allegations under the False Claims Act.
The allegations concerned billing Medicare and Medicaid for services that were performed by unlicensed individuals and poorly supervised. For example, allegedly psychotherapy was performed without proper licensing or supervision and the government paid for the services as if it was performed by properly credentialed individuals.
The whistleblower award under the False Claims Act is up to 30% of the government’s recovery, so under the statute, the whistleblowers stand to receive whistleblower rewards up to $1.38 million dollars.
$3 Million False Claims Act Settlement. May 25th, 2022. U.S. ex rel. Altizer v. Heytex USA, Inc., Civil Action No. 7:20-cv-00170 (W.D.Va.). Western District of Virginia.
HEYtex USA allegedly defrauded the United States Government by knowingly selling fabrics to the military that failed to meet required specifications.
The whistleblower who reported this case received a False Claims Act Whistleblower Award of 15-30% of the government’s recovery, or $450,000 to $900,000.
$2.8 Million False Claims Act Settlement. June 28, 2022. Eastern District of Texas.
Fifteen doctors in Texas have agreed to pay $2.8 million to settle False Claims Act liability arising from allegations that they were paid remuneration from nine management service organizations (MSOs) in exchange for ordering tests from three laboratories, in violation of the Stark Act and the Anti-Kickback Statute.
$12.2 Million False Claims Act Settlement. April 18, 2017. United States ex rel. Christopher Sean Capshaw, et al. v. Bryan K. White, et al.; Civil Action No. 3:12-cv-4457. Northern District of Texas.
International Tutoring Services, LLC, f/k/a International Tutoring Services, Inc., and d/b/a Hospice Plus; Goodwin Hospice, LLC; Phoenix Hospice, LP; Hospice Plus, L.P.; and Curo Health Services, LLC f/k/a Curo Health Services, Inc. will pay $12.2 Million to resolve allegations under the False Claims Act.
The allegations concerned illegal kickbacks paid to doctors, nurses, medical providers, etc., in exchange for patient referrals in the form of equity-free interest, sham loans, stock dividends, cash, gift cards, and other items of value, such as free rental space. Kickbacks violate the AKS (anti-kickback statute) and are illegal per se
Under the False Claims Act, the individuals who commenced the action were eligible for a whistleblower award up to $3.66 Million dollars.
$63.7 Million False Claims Act Settlement. December 14, 2017. United States ex rel. Gallian v. DaVita Rx, LLC, No. 3:16-cv-0943-B. Northern District of Texas.
DaVita Rx LLC, a national pharmacy serving patients with severe kidney disease, will pay $63.7 Million to resolve allegations under the False Claims Act.
The allegations concerned billing of federal healthcare programs for medications of prescription that were never shipped or were returned, and non-compliance with requirements for documentation of proof of delivery, refill requests, etc. Additional allegations concerned the payment of financial inducements to Federal healthcare program beneficiaries as an incentive for them to use their product which allegedly violated the Anti-Kickback Statute (“AKS”).
The former DaVita Rx employees, filed lawsuits under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government and will receive roughly $2.1 million from the federal recovery as a whistleblower reward
$237 Million False Claims Settlement. October 16, 2015. United States ex rel. Drakeford v. Tuomey Healthcare System, Inc. Case No. 3:05-cv-02858 (MBS). North Carolina.
The United States resolved a $237 million dollar False Claims Act case judgment against Sumter, South Carolina-based Tuomey Healthcare System.
The jury found that Tuomey making arrangements with specialist physicians to refer their outpatient procedures to Tuomey, and, in exchange, it paid them compensation exceeding fair market value violating the False Claims Act and the Stark Law. This compensation included part of the money received from Medicare by Tuomey.
Under the False Claims Act, whistleblowers are entitled to a whistleblower award of up to 30%, thus the relators were eligible for whistleblower rewards up to $71 million dollars, however.