Practice Area: Whistleblower & Qui Tam Litigation
Outcome: $160 million settlement
Our firm represented a whistleblower who filed a False Claims Act case alleging that the Medicare program has been defrauded through an illegal kickback scheme by Arriva Medical, LLC. Specifically, the complaint alleged that Arriva waived co-pay obligations and offered “free” home blood glucose monitors in violation of the Anti-Kickback Statute. According to the lawsuit, Arriva submitted false claims to the Medicare program that were tainted by this kickback scheme.
Arriva was at one time the country’s largest supplier of mail order diabetic testing supplies for Medicare beneficiaries. But the company is now defunct, after having its Medicare supplier number revoked in 2016 once the government uncovered, as part of this investigation, that the company had billed Medicare for deceased beneficiaries.
This $160 million settlement is the largest False Claims Act recovery ever in the Middle District of Tennessee.
The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. To read more about our whistleblower practice group, click here.