False Claims/Qui Tam/Whisteblower Litigation

WE REPRESENT COURAGEOUS WHISTLEBLOWERS WHO STOP FRAUD
For over a decade we have represented whistleblowers and other courageous individuals who have taken action to stop fraud against the state and federal governments. Our firm brings a unique combination of expertise to these cases, as we specialize both in the civil prosecution of fraud and in protecting employee rights.

Under the federal False Claims Act, any person can sue on behalf of the United States for fraud against the federal government. The Government can recover up to three times their actual damages, plus up to $11,000 for each false statement (e.g., every false report made to the Government). The person who brings the action, or the Relator, is entitled to a percentage of the Government's award - between 15 and 30 per cent. The False Claims Act also protects employees from termination, demotion, or harassment, by providing damages including twice the amount of back pay owed.

Illinois provides similar protection under the Whistleblower Reward and Protection Act. Other states have similar laws, including California, Delaware, Florida, Hawaii, Louisiana, Massachusetts, Nevada, Tennessee, Texas, Virginia, and the District of Columbia.

To shield persons who report fraud and facilitate the Government's investigation, these cases are initially brought under seal so that the case remains secret at least until after the investigation is complete.

Many of our current cases are under seal, including some major cases involving prescription drugs and other Medicare/Medicaid frauds. In addition to the cases mentioned below, the firm acts as counsel in other False Claims Act cases that have been filed under seal or are in development stages

REPRESENTATIVE CASES

U.S. ex rel. Robinson v. Northrop Grumman Co., The firm represents auditors who witnessed massive fraud in Northrop's accounting and engineering systems for the B-1, B-2, and F-15 programs at its facility in Rolling Meadows, Illinois. After a 1992 decision by the Government not to intervene, the Firm has continued to pursue the case aggressively. Based on facts the Firm developed through discovery and its own investigation, the Government re-opened its criminal investigation and decided to re-intervene in the case. Recently, the former highest-ranking military procurement official for the United States, a retired General, testified on the plaintiffs' behalf. After 16 years of intense litigation, the case settled for $139 million in 2005.

U.S. ex rel. Reppine v. University of Chicago, 96-8273 (N.D. Ill.). $10 million qui tam (false claim) settlement involving hospital "upcoding" and overbilling of Medicaid finalized in January 2000.

Cost Containment and Recovery Services, et al. v. Medaphis Corp., The firm was principal counsel to the relator in a fraud case brought under both the California and federal false claims statutes. The essence of the complaint was that Medaphis, a billing agent for doctors and hospitals, was intentionally up-coding bills for services covered by Medicare and other federal programs for the purpose of inflating payments to Medaphis and its clients. Following a grand jury investigation, both the criminal and civil cases were resolved by Medaphis paying over $1.5 million.