Healthways, Inc. agrees to gigantic settlement in 15-year whistleblower suit

Healthways, Inc. has entered into a huge financial settlement to end a whistleblower suit filed fifteen years ago against one of the company’s subsidiaries, Diabetes Treatment Centers of America (DTCA ). In 1994, A. Scott Pogue filed the False Claims Act suit in federal court in Nashville after he was fired from his job as a marketing representative with DTCA. The whistleblower suit alleged that DTCA had engaged in massive Medicare fraud and illegal kickback schemes. Because the federal government declined to intervene in the suit, Mr. Pogue will receive between 25 to 30 percent of the settlement, as opposed to the lower percentage awarded when the government assumes control of whistleblower litigation. In addition, Healthways, Inc. will also pay the cost of Mr. Pogue’s sizable attorney’s fees and expenses incurred over the past 15 years.

Read the full story as it appeared in the Montgomery Independent.