Historic settlement for over 1,300 survivors of clergy and adult abuse within the Roman Catholic Archdiocese of Los Angeles, marking a pivotal moment for justice.
October 17, 2024
Individual whistleblowers working with the U.S. Department of Justice helped secure a record 543 settlements and judgments and the recovery of more than $2.68 billion under the False Claims Act (FCA) in 2023.
The results solidify the FCA as one of the government’s most important tools for exposing fraud in government programs and operations.
Enacted during the Civil War to target fraud by government contractors, the FCA holds individuals and companies accountable for submitting false claims to the government. It imposes liability for triple the damages sustained by the government. Private citizens with knowledge of fraud can file lawsuits on behalf of the United States, sharing in any recovered funds — typically 15 to 30 percent. Since 1986, when Congress strengthened the FCA, the law has resulted in the recovery of more than $75 billion.
The majority of the qui tam whistleblower filings and recoveries in 2023 targeted fraud in government healthcare programs, including Medicare, Medicaid and TriCare by managed care providers, hospitals, pharmacies, laboratories, long-term acute care facilities and physicians. In addition to recovering fraudulent spending, whistleblower claims protect individuals from unnecessary and potentially harmful medical procedures.
WKPS Client Helps DOJ Obtain Record FCA Recovery
A case initiated by Waters Kraus Paul & Siegel and their client, Lynda Pinto, was singled out among the largest FCA recoveries of 2023. In U.S.A. v. Cardiac Imaging Inc., Cardiac Imaging and its founder, owner, and CEO Sam Kancherlapalli agreed to pay $85.5 million to resolve Ms. Pinto’s allegations that the company paid kickbacks to cardiologists when they referred patients to Cardiac Imaging for PET scans. According to her allegations, the fees charged to the government by Cardiac Imaging were substantially above fair market value and included charges for time when the doctors were not even on site. The agreement is the largest single district civil settlement in the history of the U.S. District Court for the Southern District of Texas.
In early 2024, the Justice Department announced it had again joined Pinto in proceeding with the qui tam lawsuit against Cardiac Imaging’s former president and co-owner Rick Nassenstein. The case now centers around Nassenstein’s role paying exorbitant, above-fair market value fees to doctors who referred patients to CII for cardiac PET scans in violation of the Physician Self-Referral Law, also known as the Stark Law.
What is the False Claims Act?
The False Claims Act is a federal law aimed at preventing fraud against the government by individuals and businesses. Key aspects of the law include:
How Do We Fight Fraud Against the Government?
Seek justice on behalf of taxpayers with the help of our experienced attorneys. Our Dallas, Texas, whistleblower team has battled corporate giants for 20 years, aggressively fighting to hold corporations, individuals, and other entities accountable for fraud committed against the government. If you believe you have a whistleblower case, we can help.
Our Results
Historic settlement for over 1,300 survivors of clergy and adult abuse within the Roman Catholic Archdiocese of Los Angeles, marking a pivotal moment for justice.
A Philadelphia jury awarded a record verdict against ExxonMobil for failing to warn about cancer risks due to benzene in its petroleum products.
Confidential settlement for the wife of a Rhode Island man who died of mesothelioma cancer after exposure to window glazing compound contaminated with asbestos.