Idaho Receives a Portion of the $75 Million Bristol-Myers Squibb Settlement

Attorney General Lawrence Wasden announced Idaho has joined with other states and the federal government to settle allegations that Bristol-Myers Squibb Company overcharged the state Medicaid programs for drugs.

The investigation resulted from a qui tam action filed in the United States District Court for the Eastern District of Pennsylvania under the federal False Claims Act and various state false claims statutes.

Bristol-Myers Squibb, a New York-based pharmaceutical manufacturer, has paid the states and the federal government $75 million to resolve allegations against the company.

Pursuant to the settlement, Idaho received $86,102 in payment on September 7, 2021. Of that, $42,809 will be directed to the Department of Health and Welfare for state Medicaid restitution. The rest will go to the state’s general fund.

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A Lawsuit Against a Colorado City Settles for $3 Million

Karen Garner and the City of Loveland have agreed to settle her claim against the city for $3 million, the city announced Wednesday.

The City of Loveland said once finalized, the settlement will end Garner’s pending federal lawsuit stemming from her June 2020 arrest by officers of the Loveland Police Department (LPD).

Garner, an elderly woman with dementia, was arrested after she was accused of stealing from a Walmart store.

Read the source article at Denver’s Leading Local News

A Judge Is Expected to Rule on the Multi-Billion Dollar Purdue Pharma Settlement

A federal bankruptcy judge is expected to rule Wednesday on whether to accept a settlement between OxyContin maker Purdue Pharma, the states and thousands of local governments over an opioid crisis that has killed a half-million Americans over the last two decades.

If Judge Robert Drain confirms the plan, estimated to be valued at $10 billion, it could cap years of litigation. Members of the Sackler family would give up ownership of the company and pay $4.5 billion while the company is converted to a new entity with its profits being used to fight the epidemic. Objectors could appeal the ruling.

The next steps become murkier if the judge sides with a handful of holdout states and activists by rejecting the plan. Parties in the case could head back to the drawing board, and long-paused lawsuits against the company and Sackler family members would likely resume.

The most contentious issue in the settlement process is that Sackler family members would receive protection from lawsuits over opioids. They would not receive immunity from criminal charges, though there are no indications any are forthcoming.

Read the source article at Associated Press News

USA Gymnastics Sexual Abuse Survivors Agree to a $425 Million Settlement

USA Gymnastics has reached an agreement on a proposed $425 million settlement with more than 500 women who said they were sexually abused by Larry Nassar, their coach or someone else affiliated with the sport.

The offer, filed late Tuesday in U.S. Bankruptcy Court for the Southern District of Indiana, is part of a reorganization plan that would allow USA Gymnastics to emerge from bankruptcy.

But there aren’t enough funds for the settlement yet, with agreements still needing to be reached with several insurance carriers. Until, and unless, that happens, it won’t go through. 

“What this isn’t is a settlement. This is a proposed resolution that the Survivors Committee supports,” said John Manly, an attorney who represents many of the survivors, including Olympic champions Aly Raisman and Simone Biles.

Read the source article at USA TODAY

A $575 Million Settlement Between California and Sutter Health Receives Final Approval

California Attorney General Rob Bonta on Friday lauded Judge Massullo’s final approval of a landmark $575 million settlement with Sutter Health (Sutter). The settlement agreement was reached in 2019, and resolves allegations by the Attorney General’s office, the United Food and Commercial Workers and Employers Benefit Trust (UEBT), and class action plaintiffs that Sutter’s anticompetitive practices led to higher healthcare costs for consumers in Northern California compared to other places in the state. The settlement requires Sutter to pay $575 million in compensation, prohibits anticompetitive conduct, and requires Sutter to follow certain practices to restore competition in California’s healthcare markets.  

“This is a groundbreaking settlement and a win for Californians,” said Attorney General Bonta. “Sutter will no longer have free rein to engage in anticompetitive practices that force patients to pay more for health services. Under the terms of our agreement, Sutter’s transparency must increase, and practices that decrease the accessibility and affordability of healthcare must end. A competitive healthcare market is essential to ensuring patients and families aren’t bearing the brunt of healthcare costs while one company dominates the market.”

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A California Respiratory Fraud Case Is Settled for $3.31 Million

California Attorney General Rob Bonta announced a $3.31 million settlement against home respiratory services company, SuperCare Health Inc. (SuperCare) for defrauding the state and federal government by knowingly billing Medicare and Medi-Cal for servicing ventilators that were no longer medically necessary. The proposed settlement resolves allegations that the Downey, California,-based company submitted fraudulent claims to Medi-Cal in violation of the state and federal False Claims Acts. Under the proposed settlement, SuperCare will pay a total of $3.31 million to multiple government plaintiffs, with California receiving approximately $327,000.  

“Medi-Cal is a lifeline that provides access to free or affordable health care services for millions of Californians and their families,” said Attorney General Bonta. “When any health care service provider defrauds the program, they break the public’s trust and put profits before the patients who count on them for honest, quality care and services. It is my hope that today’s settlement is a reminder that we will investigate and prosecute allegations of Medi-Cal fraud.”

SuperCare sells and rents equipment used in the treatment of breathing-related disorders, such as sleep apnea and chronic obstructive pulmonary disease. One of the machines used to assist patients with breathing is the noninvasive ventilator. The ventilators, either with or without oxygen, deliver pressurized air to patients to assist in the breathing process, particularly during sleep.

Read the source article at Home

Connections Community Support Programs Settles Health Care Fraud and Controlled Substances Allegations With a $15 Million Settlement

U.S. Attorney David C. Weiss announced today that Connections Community Support Programs, Inc. (“CCSP”) has agreed to the entry of consent judgments totaling over $15,300,000 to resolve two lawsuits brought by the federal government alleging health care fraud arising under the federal False Claims Act and violations of the Controlled Substances Act.  Prior to the sale of its assets in bankruptcy, CCSP provided a variety of mental health and addiction treatment services at numerous locations throughout Delaware.

CCSP has agreed to the entry of a judgment in the amount of $13,757,520.60, plus interest, to resolve claims that CCSP violated the False Claims Act by billing for mental health services performed by individuals whose professional qualifications did not allow them to bill Medicare or Medicaid for reimbursement and by billing Medicaid for mental health services using incorrect procedure codes for the person performing the service, resulting in higher payments than were permitted.  CCSP has also agreed to the entry of a judgment in the amount of $1,621,571, plus interest, to resolve claims that it violated the federal Controlled Substances Act by negligently failing to keep proper records of its use of controlled substances, including methadone and buprenorphine, in its treatment of patients with substance use disorders and by transferring controlled substances between locations without proper documentation.

On April 19, 2021, shortly after the filing of these two lawsuits by the United States, CCSP filed for bankruptcy.  On June 15, 2021, CCSP completed a sale, overseen by the Bankruptcy Court, of its assets and operations to Conexio Care, Inc. and Coras Wellness and Behavioral Health, which are now providing the mental health and addition treatments services formerly provided by CCSP.  The settlement agreements and consent judgments agreed to by CCSP and the United States must still be approved by the Bankruptcy Court and the final amount of any recovery by the United States will be limited by the availability of funds in the bankruptcy estate to pay the United States and other creditors of CCSP.

Read the source article at U.S. Department of Justice

Healthcare Services Group Settles an Accounting Lawsuit for $6 Million

Healthcare Services Group has agreed to pay $6 million to settle charges that its CFO failed to record loss contingencies from legal liabilities to inflate its earnings.

According to the U.S. Securities and Exchange Commission, the accounting violations resulted in HCSG’s earnings being misstated for six quarters between the first quarter of 2014 and the fourth quarter of 2015.

Had CFO John Shea “properly recorded the financial impact of the loss contingencies at the time they were probable and reasonably estimable, the company would have reported lower EPS and missed research analysts’ consensus EPS estimates in many of the applicable quarters,” the SEC said in an administrative order.

Read the source article at CFO: Corporate Finance News and Events

Aegis Living Agrees to Pay $16.25 Million to Settle a Staffing Lawsuit

Aegis Living says it has agreed to the $16.25 million settlement of a lawsuit alleging that staffing decisions were based on budgets rather than resident care needs so that it can focus on “what matters most —  our residents, their families and our team.”

A federal judge on Monday signed off on the settlement, which resolves claims that the Bellevue, WA-based company in Washington state and California made staffing decisions based on budgets rather than resident care needs. Aegis continues to deny any wrongdoing.

“The core of our mission and culture is to provide the highest level of care for our residents. From the beginning, we have fervently disputed the allegations in this case,” Aegis Living General Counsel Elizabeth Chambers told McKnight’s Senior Living on Tuesday. “After several years of aggressively litigating, we made the decision to stop fighting, collaborate with the plaintiff’s attorneys, and put an end to this case so we can continue focusing our full attention on what matters most —  our residents, their families and our team.”

Read the source article at McKnight’s Senior Living

A Georgia County Settles a Property Tax Dispute for $3.5 Million

Bryan County has settled a property tax dispute with the City of Richmond Hill, paying the municipality $3.5 million to resolve a three-year-old lawsuit.

The settlement will be used for eight different infrastructure projects, including road improvements and traffic signals, that Richmond Hill and Bryan County will work on together. 

The county also agreed to stage an ambulance and EMS crew within Richmond Hill’s limits to aid the city’s growing elderly population. Lastly, the agreement states the county will repay more than $2.5 million back to the general fund. 

Read the source article at Savannah Morning News