May 5, 2021 - Posts

Whistleblower Roundup – May 5th, 2021

A look back at the week’s news and developments affecting whistleblowers.


SEC Awards Over $50 Million to Joint Whistleblowers

This week the Securities and Exchange Commission (SEC) announced an award of over $50 million to joint whistleblowers whose information alerted SEC staff to violations involving highly complex transactions that would otherwise have been very difficult to uncover. “Today’s award is the second largest in the history of the program, reflecting the tremendous contribution of these joint whistleblowers to our ability to recover funds for harmed investors,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “The SEC has now awarded over a quarter of a billion dollars to whistleblowers in the first seven months of this fiscal year alone, demonstrating the tremendous value of whistleblowers to our enforcement program.” The SEC has awarded approximately $812 million to 151 individuals since issuing its first award in 2012. To read the full press release, click here.


Massachusetts Eye and Ear Agrees to Pay $2.6 Million to Resolve False Claims Act Allegations

Massachusetts Eye and Ear Infirmary (Massachusetts Eye and Ear) has agreed to pay $2.678 million to resolve allegations that they violated the False Claims Act. Specifically, the United States has alleged that between 2012 and 2020, Massachusetts Eye and Ear regularly submitted claims to Medicare and MassHealth for office visits where physicians performed certain medical procedures, like nasal endoscopies and laryngoscopies. Medicare and MassHealth do not permit billing for such office visits in addition to billing for the procedures, except under special circumstances that were not present here. To read the full article, click here.


Miami-Based CareCloud Health Agrees to Pay $3.8 Million to Resolve Allegations It Paid Illegal Kickbacks

CareCloud Health, Inc. (CareCloud), a Miami-based developer of electronic health records (EHR) software products, has agreed to pay $3.8 million to resolve allegations that it paid unlawful kickbacks to generate sales of its EHR products. The United States alleges that CareCloud violated the False Claims Act and the Anti-Kickback Statute through its marketing referral program. Between 2012 and 2017, CareCloud purportedly offered and provided its existing clients cash equivalent credits, cash bonuses and percentage success payments to recommend CareCloud’s EHR products to prospective clients. The settlement resolves allegations filed by a whistleblower. The whistleblower will be awarded approximately $800,000. To read the DOJ press release, click here.


To learn more about our Whistleblower & Qui Tam practice click here. Our firm is located in Nashville, Tennessee but we represent whistleblowers all around the country. Call us today at (615) 244-2202.

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