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  • March 2, 2010

    Baron & Budd’s Patrick O’Connell Speaks Out in Support of Maryland False Claims Act

    Because of his experience as a former Texas Assistant Attorney General and his service as Chief of the Texas Civil Medicaid Fraud Section, Baron & Budd attorney Patrick O’Connell is frequently called upon to testify or comment on issues involving state or federal false claims acts. Most recently, he was quoted in support of attempts to pass a state false claims act in Maryland this year. Read More


  • January 29, 2010

    Louisiana cardiologist sued by Justice Department for False Claims Act violations

    Dr. Mehmood Patel, an interventional cardiologist formerly practicing in Lafayette, Louisiana, has been sued by the United States in a False Claims Act suit asking for treble damages and penalties. The lawsuit claims that Dr. Patel performed medically unnecessary cardiovascular procedures and then billed Medicare for it. Dr. Patel has already been convicted on 51 criminal counts for his fraudulent conduct. Patel received a 10-year prison sentence for performing unnecessary cardiac angiograms, angioplasties and stents. Read More


  • January 14, 2010

    Federal Appeals Court rules settling False Claims Act defendant may sue third parties

    The Ninth Circuit Court of Appeals has ruled that the False Claims Act does not prevent a defendant who settles with the government without admitting liability from suing third parties whom the defendant asserts are responsible for any alleged violations. In the case on appeal, the defendant was Cell Therapeutics Inc. (“CTI”), which developed a leukemia drug approved by the Food and Drug Administration in 2000. When CTI marketed the drug for unapproved, off-label uses, a whistleblower sued the company on the government's behalf, alleging Medicare fraud. CTI settled the case with the United States but failed to admit wrongdoing. Read More


  • January 14, 2010

    United States recovers $2.4 billion this year in False Claims Act suits

    In the fiscal year ending Sept. 30, 2009, the United States recovered $2.4 billion in judgments and settlements from lawsuits alleging fraud against the government. Historically, this is the second largest annual recovery from claims involving civil fraud. Since 1986, when the civil False Claims Act was substantially strengthened, the government has recouped more than $24 billion. Read More


  • January 12, 2010

    Medicare fraud suit results in New Jersey hospital settlement; suit against New York facility continues

    The United States has settled with a New Jersey hospital named by a whistleblower in a Medicare fraud suit and has sought to intervene in the same case against a New York facility. The government will receive a sizable settlement from Trinitas Regional Medical Center in Elizabeth, N.J. and will pursue claims against Brookhaven Memorial Hospital, located in East Patchogue, N.Y. The whistleblower suit was originally filed in 2005 by Tony Kite, and alleges that the two hospitals fraudulently inflated charges to Medicare patients as part of a scam to take in higher reimbursements from Medicare. Read More


  • January 6, 2010

    Baron & Budd’s Greatest Hits of the Decade

    As the first decade of the new millennium draws to a close and we reflect on the past ten years, Baron & Budd would like to share with you what we consider some of our law firm’s major accomplishments—our “Greatest Hits” of the decade, if you will. So, in the spirit of Casey Kasem, here is our countdown of the decade. We wish all of you happy holidays and a prosperous new year—and new decade—to come. Read More


  • December 23, 2009

    Washington State to receive settlement in pharmaceutical Medicaid scam

    Washington State is scheduled to receive a substantial settlement as part of the resolution of an investigation into an alleged scheme of four pharmaceutical companies to defraud Medicaid by classifying their prescription drugs so as to reduce the amount the companies owed to Medicaid in regular rebate payments. The pharmaceutical companies involved include UDL Laboratories, Inc., Mylan Pharmaceuticals, Inc., Ortho McNeil Pharmaceutical, Inc., and AstraZeneca Pharmaceuticals LP. Drug makers that supply products to Medicaid patients are required under the Federal Medicaid Drug Rebate law to rebate both the federal and state governments with a designated portion of revenues from Medicaid sales. The four companies under investigation were alleged to have violated the False Claims Act by classifying their drugs in a way that quarterly rebate amounts were reduced, thus maximizing profits with both the state and federal health care programs. Read More


  • December 22, 2009

    U.S. joins whistleblower suit against Kuwait-based food suppliers to military

    The United States has joined a False Claims Act suit against a number of Kuwait-based entities that supplied food to U.S. troops in the region. The whistleblower lawsuit names Public Warehousing Company (PWC), The Sultan Center Food Products Company (TSC), and Tarek Abbul Aziz Sultan Al-Essa, the chief executive officer of PWC. Filed in federal court in Georgia, the suit alleges that the companies violated the federal False Claims Act by making false claims for payment in connection with PWC's contracts to supply food for U.S. troops stationed in Iraq, Kuwait and Jordan. Since 2003, alleges the complaint, the defendants intentionally overcharged the government for locally grown fresh fruits and vegetables purchased by PWC from TSC. PWC also allegedly breached its contracts with the government by failing to disclose or to give rebates and discounts the company obtained from its suppliers based in the U.S. Read More


  • December 16, 2009

    South Texas Health System settles False Claims Act lawsuit

    On October 26, South Texas Health System settled a False Claims Act lawsuit and a four year federal investigation involving allegations that the health care provider engaged in Medicare and Medicaid fraud by providing Rio Grande doctors with phony job titles, lease arrangements and other improper kickbacks in exchange for the physicians' referral of patients to South Texas Health System hospitals.
    Federal law prohibits a provider such as South Texas from billing the government for patients referred by doctors with whom the facility has a "financial relationship," unless specific exemptions apply. Read More


  • November 17, 2009

    Six Indiana and Alabama hospitals settle Medicare fraud allegations

    Six Indiana and Alabama hospitals have agreed to pay a substantial amount to resolve allegations that they violated the False Claims Act by submitting false claims to Medicare. The Indiana hospitals involved are Deaconess Hospital in Evansville, St. Francis Hospital in Beech Grove and St. John's Hospital System in Anderson. The Alabama hospitals are Providence Hospital facilities in Mobile and Birmingham, St. Vincent's Birmingham Hospital and St. Vincent’s East Hospital. Read More


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