Qui Tam Case Examples

Qui tam suits are filed quite often, and with steadily increasing frequency since the False Claims Act Amendment in 1986. In 1987, thirty-three qui tam cases were filed and just under $400,000 was recovered. Ten years later, federal courts saw 533 qui tam cases filed in a single year. The total amount recovered in qui tam cases has risen quite steadily as well, reaching over $1 billion in each of the last three years.

TAP Pharmaceuticals

In one of the largest settlements ever for a health care fraud case, TAP Pharmaceuticals agreed to pay nearly $600 million over allegations of kickbacks and false Medicare claims. The qui tam suit alleged that TAP paid doctors to dispense its cancer drug and also convinced the doctors to charge their patients for samples (for which Medicare covered 80 percent of the cost).

Beverly Medical Care

Beverly Medical Care agreed to a $175 million settlement over qui tam charges that employees of its chain of nursing homes were exaggerating claims of time spent attending Medicare patients.

Oil Companies

Four qui tam suits encompassing eighteen oil companies as defendants have been settled in recent years. The suits charged that the companies underpaid royalties that were due for oil extracted on Department of the Interior and Native American land.

Boeing and Lockheed Martin

Boeing and Lockheed Martin have both been forced to settle qui tam suits for defective products provided to the military.

Quorum Health Group

Quorum Health Group, Inc. has settled two qui tam lawsuits: one involving Medicare fraud and the other involving the allocation of funds from a hospital to its home health agency. The Medicare settlement will require Quorum to pay approximately $77.5 million and the other settlement requires Quorum to pay $95.5 million with interest at 7.25% until final agreements have been reached.