DCA Blog

U.S. Government Joins Michigan Medical Whistleblowers in Qui Tam Action

In January 2012, The United States government filed a suit in the United States District Court for the Eastern District of Michigan, seeking $150 million in damages under the Federal False Claims Act, alleging that Universal Imaging, Inc. paid kickbacks to doctors, and essentially operated as a for-profit corporation while required to be a non-profit.  A $1.56 million settlement with many of the involved physicians was also announced in the same press release.

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False Claims Act Update Published in Federal Bar Assosciation Bar and Bench Newsletter

To read my article discussing recent updates to the False Claims Act, please click on this link: https://www.westmichiganfederalbar.org/newsletters/FBB_v3.pdf

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U.S. Supreme Court Upholds Arbitration Clause in AT&T Contracts Disallowing Class Actions

On April 27, 2011, the U.S. Supreme Court, in a 5-4 decision penned by Justice Antonin Scalia, determined that an arbitration provision in millions of AT&T's subscriber contracts prohibits the filing of class action lawsuits by consumers of AT&T's products.  The long-pending case, AT&T Mobility LLC v. Concepcion, turned on whether a California law disallowing arbitration provisions that waived consumers' rights to bring class claims was contrary to a federal law which favors private arbitrations over lawsuits.  The court held that California's law was invalid.  Justices Breyer, Ginsburg, Sotomayor and Kagan dissented.

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Whistleblower Case Against Iraq Contractors Nets More Than $8.7 Million

Two Whistleblowers brought a Qui Tam False Claims Act case against two contractors who they claimed over billed taxpayers for work in Iraq.  The Whistleblowers were former employees of The Sandi Corp (TSG), who alleged that Dyncorp International over billed for construction projects, and that TSG kept funds that should have been paid as hazardous duty pay to the company's employees.  The two Whistleblowers will each receive a $481,710 share of the Government's Recovery.  The United States spends millions of dollars on projects in Iraq and Afghanistan, and Whistleblowers provide an invaluable service by reporting fraud that might otherwise go undetected in these combat zones.

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