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Lexington Medical Center Pays $17M in Whistleblower Suit

A South Carolina hospital will pay $17 million to resolve a whistleblower suit alleging False Claims Act and Stark Law violations regarding employment agreements and physician practice acquisitions.

The Lexington Medical Center allegedly violated the FCA and Stark Law because arrangements with outside physicians were tied to the value or volume of referrals, and were not “commercially reasonable” or exceeded fair market value. The case was brought by David Hammett, a doctor at LMC, who will receive a $4.6 million payout for making the whistleblower claim.

LMC’s alleged arrangement involved 28 physicians at five practices specializing in various fields including internal medicine, orthopedics, and cardiology, according to the settlement agreement.

According to the DOJ, the settlement will ensure that medical services are ordered because “they are in the patient’s best interest, and not because the physician stands to gain financially from the referral.”

As part of the settlement, the hospital is appointing a compliance officer to report to the CEO to make sure they comply with the Stark Law and the Anti-Kickback Statute.

Call a Los Angeles Whistleblower Attorney Today

More and more False Claims Act and fraud cases are brought to the government’s attention, resulting in payouts to those whose claims result in settlements or payouts as a result of violations.

If you have information that could lead to a whistleblower claim, you may have certain legal rights that require your immediate attention, and you may be eligible for a payout as well.

Contact an experienced Los Angeles whistleblower attorney today for a consultation to discuss your rights and options.

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Morgan Stanley to Face $20 Million Whistleblower Lawsuit

A married couple who once worked at Morgan Stanley have filed a whistleblower lawsuit against their former employer after alleging they were dismissed after bringing harmful company information to the attention of the SEC.

According to the lawsuit filed by James Boland and Jaime Feldman-Boland, the pair witnessed colleagues illegally making trades without a license and cold calling potential investors using misleading information that promised 15% returns on risky investments.

The Bolands filed whistleblower complaints with the SEC in July 2011 and met with FINRA investigators in August 2011.  FINRA began an audit of Morgan Stanley shortly thereafter. Within a few weeks of the investigation commencing, Jamie Feldman-Boland was terminated. Shortly after, James Boland was fired in November of 2011.

Morgan Stanley’s attempt to dismiss the lawsuit was recently unsuccessful and the case will proceed under the whistleblower provisions of the Dodd-Frank Act and Sarbanes-Oxley Acts.

Call a Los Angeles Whistleblower Attorney Today

If you have witnessed illegal activity at your company, you may be entitled to a reward if your information leads to the collection of a fine for illegal activity.

If you have been terminated for addressing wrongdoing within your company, you may have certain legal rights that require your immediate attention.

Contact an experienced Los Angeles whistleblower attorney today for a consultation to discuss your rights and options.

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