Tennessee False Claims: Hospital Pays $5 Million To Settle Kickback Lawsuit

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A Tennessee false claims lawsuit filed against the Meridian Surgical Partners alleging kickbacks has been settled for $5 million, including $1.8 million as reward for whistleblower and his attorney. The qui tam suit was brought in 2011 after a former business manager turned whistleblower and claimed violation of the Tennessee False Claims Act by the surgical chain operator for commercial gains. Two months prior to the Medicare fraud settlement, another whistleblower lawyer representing a Chattanooga businessman sought recovery of $10 million allegedly siphoned through inflated billing.

Tennessee False Claims Act Violation by Meridian Surgical

Thomas Reed Simmons filed a Tennessee false claims lawsuit against his former employer Meridian Surgical Partners, alleging breach of the federal Anti-Kickback Statute. The hospital chain “purchased a majority of shares of Stuart, Florida-based Treasure Coast Surgery Center and paid higher annual distributions and even stakes in the hospital doctors referring patients to it,” claimed the whistleblower lawyer representing Simmons at a Tennessee federal court.

In September 2014, just weeks before trial, Meridian agreed to pay $3.32 million in restitution for Medicare fraud and $1.8 million to the whistleblower, admitting violation of the Tennessee false claims act. The original claim involved accusation of Medicare misappropriation to the tune of $100 million through false billing for referral patients. Simmons and his Tennessee false claims attorney went on their own after the U.S. Department of Justice refused to be party to the prosecution.

Tennessee False Claims Lawsuit Seeks Recovery of $10 Million

Another Tennessee false claims lawsuit filed in July 2014 has sought recovery of $10 million from the Electric Power Board of Chattanooga. The plaintiff, a former contractor, alleges that the company inflated prices of electricity bulbs supplied to Chattanooga City that caused loss of taxpayers’ money. The whistleblower lawsuit traces its cause to dispute over EPB’s acknowledgement of potential false billing and erratic record keeping.

EPB supplied 46,000 bulbs to be used in streetlights at an inflate price billed 27 percent more on an average, the false claim attorney representing plaintiff Don Lepard argues. The supplier justified its action, asserting that it charged the city less and even made replacements at many places without any extra cost.

Lepard’s Global Green Lighting provided superior LED replacements for a third of EPB bulbs. According to the plaintiff’s whistleblower lawyer, EPB changed its books following complaints made by his client but did not reimburse the city for inflated prices. Even the city mayor asked the electricity distribution and supply utility to streamline its bookkeeping after it admitted to have overbilled taxpayers. The company’s claim of offsetting the higher prices is disputed by the plaintiff and the city auditor.

Tennessee False Claims Lawsuit: Whistleblower Protection

Whistleblowers filing false claim lawsuits in Tennessee highlighting defrauding of Medicare or taxpayers’ money are rewarded and protected under the state law. While 15 to 30 percent of the total amount recovered or settled for is awarded to the qui tam plaintiff for his role in ensuring retrieval of public money, the Tennessee False Claim Act provides comprehensive measures to protect him from retaliations of any kind. It offers encouragement to whistleblowers to disclose corrupt practices and empower the state to act against the guilty

The state is also at liberty to join a Tennessee false claim lawsuit based on its merit. If it denies participating in the case, the plaintiff still has the option to proceed with the help of his qui tam lawyer. For false claims free case evaluation, please contact us or call on 1-800-632-1404.

Contact a Tennessee False Claims Act Attorney

We help whistleblowers on a contingency basis, meaning there is no fee charged for our work unless there is a recovery. We also front any and all expenses. No matter where you are located — we will represent you. We will come to you, you will not have to come to us. Attorneys in our firm and attorneys that we work with on Whistleblower, Qui Tam, False Claims Act cases have represented a host of persons making claims, for violations of federal tax law, Medicare law and more. For more information, please contact our team of whitsleblower and qui tam attorneys today.

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    Our offices will review potential false claims act cases in all fifty states, including Tennessee, Arkansas, Mississippi, Kentucky and Alabama.

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