Latest news with #FalseClaimsAct
NBC News
2 days ago
- Health
- NBC News
Domestic violence and sexual assault organizations sue Trump administration over funding restrictions
More than 20 nonprofit organizations that receive federal grants to serve victims of domestic violence and sexual assault, and those experiencing homelessness, filed a lawsuit Monday against the Trump administration over new funding requirements. The organizations — which are spread across more than a dozen states and include Rhode Island Coalition Against Domestic Violence, Colorado Coalition Against Sexual Assault, and Violence Free Minnesota — allege the changes at the Departments of Housing and Urban Development (HUD) and Health and Human Services (HHS) 'have thrown a wrench' in their 'life-saving work.' Some of the plaintiffs, according to the suit, stand to lose hundreds of thousands of dollars in federal funds. The complaint, filed in U.S. District Court for the District of Rhode Island, states that the new restrictions do not enable the plaintiffs to better serve vulnerable members of society and instead 'seek to advance the Administration's wholly unrelated ideological goals—including to end 'diversity, equity, inclusion, and accessibility,' deny transgender people's identities, and cut off access to abortion resources and referrals.' In March, for example, HUD Secretary Scott Turner announced in a post on social media that the department would impose new conditions on funds distributed through its Continuum of Care program, which is designed to end homelessness. The conditions cite several executive orders President Donald Trump issued during the first weeks of his presidency, including that the government will only legally recognize two, unchangeable sexes; deem diversity, equity and inclusion programs within the federal government 'illegal'; and end 'forced use of Federal taxpayer dollars to fund or promote elective abortion.' HHS and three of its divisions — the Administration for Children and Families, the Centers for Disease Control and Prevention and the Health Resources and Services Administration — were also named as defendants and have enacted similar conditions for grant recipients, affecting the CDC's Rape Prevention and Education program, funding for families who have experienced domestic violence and grants intended to reduce infant and maternal mortality, among other programs. In line with those executive orders, the conditions at HUD and HHSprohibit grant recipients from using funds to promote 'gender ideology,' which the administration defines as the concept that someone's gender identity can be different than their birth sex. They also require recipients to certify that they do 'not operate any programs that violate any applicable Federal antidiscrimination laws' and prohibit recipients from using funds to 'fund or promote elective abortions.' The complaint argues that the requirements have been written in a way 'expressly designed to expose grantees to civil and criminal liability' under the False Claims Act, which prohibits false claims to the federal government. The complaint says these new conditions put plaintiffs 'between a rock and a hard place.' 'They can accept the conditions—and fundamentally change their programming, abandon outreach methods and programs designed to best serve their communities, and risk exposing themselves to ruinous liability. Or they can decline the funding and halt their funded programs—displacing domestic and sexual violence survivors from safe housing, ending programs designed to reduce and prevent domestic and sexual violence, and putting previously homeless families and children back on the streets,' the complaint states. HHS, the Administration for Children and Families, the CDC, the Health Resources and Services Administration and HUD did not immediately respond to requests for comment on the complaint. Skye Perryman, the president and CEO of Democracy Forward, one of the organizations representing the plaintiffs, said the new policy is an example of the administration continuing to 'target people in vulnerable communities.' 'Organizations serving survivors of domestic violence and sexual assault, LGBTQ+ youth, and people experiencing homelessness should not be forced to abandon their work, erase the identities of those they serve, or compromise their values just to keep their doors open,' Perryman said in a statement. 'This unlawful and harmful policy puts extreme schemes ahead of people's dignity and safety by restricting essential federal support.' The suit, which asks the court to permanently block the funding conditions, argues that imposing the restrictions exceeds the government's authority by circumventing Congress, which generally approves any changes to federal funding. In addition, the suit argues that in some cases the conditions conflict with other federal policies. For example, recipients of Continuum of Care funds are required to comply with nondiscrimination regulations, the suit states, including HUD's equal access rule, which requires services, including sleep quarters and bathroom facilities, to be 'provided to an individual in accordance with the individual's gender identity,' and that individuals are 'not subjected to intrusive questioning' or asked to provide evidence of their gender identity.
Yahoo
4 days ago
- Business
- Yahoo
Delta Air Lines to pay $8.1 million in settlement. What did the Georgia company do?
A major Georgia-based company recently settled out of federal court for a COVID-era program. Delta Air Lines allegedly violated the False Claims Act in connection to the U.S. Treasury Department's Payroll Support Program, according to a Tuesday news release from the U.S. Justice Department. Here's what we know: What is the Payroll Support Program? The PSP was reportedly stabbed in March 2020 under the Coronavirus Aid, Relief and Economic Security Act to provide payroll support to passenger and cargo air carriers and certain contractors for the continuation of payment of employee wages, salaries, and benefits. What was Delta charged with? Air carriers participating in the program were required to enter into written agreements with the treasury that imposed certain conditions in exchange for the receipt of PSP funds. Among other requirements were limitations on the amount of compensation that participants could pay to certain corporate officers and employees earning annual compensation in excess of $425,000. From 2020 to 2023, Delta allegedly awarded some corporate officers and employees compensation exceeding the limits, and violated the False Claims Act by inaccurately certifying compliance with the requirements as well as not notifying the treasure of the breach. How much was Delta Air Lines required to pay? Delta agreed to pay $8.1 million to resolve the allegations. The justice department said this was a coordinated effort between multiple divisions of their agency, the U.S. Attorney's Office for the Northern District of Georgia with help from the treasury. Where is the Delta Air Lines headquarters? Delta's global headquarters are located in Atlanta at 1030 Delta Blvd. just outside the Hartsfield-Jackson Atlanta International Airport. Miguel Legoas is a Deep South Connect Team Reporter for Gannett/USA Today. Find him on Instagram @miguelegoas and email at mlegoas@ This article originally appeared on Savannah Morning News: Delta Air Lines from Georgia to pay $8.1 settlement for payroll claims Solve the daily Crossword
Yahoo
11-07-2025
- Business
- Yahoo
Nursing home operator Genesis Healthcare files for bankruptcy
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Genesis Healthcare, one of the largest providers of skilled nursing facilities in the country, filed for Chapter 11 bankruptcy protections on Wednesday. Pennsylvania-based Genesis, which operated about 175 skilled nursing facilities across 18 states at its filing, said it struggled with post-pandemic challenges, legacy liabilities and inadequate Medicaid reimbursement. Staff will retain their positions and the filing is not expected to impact patient care, a Genesis spokesperson told Healthcare Dive. Affiliates of Genesis' investor ReGen Healthcare, a private equity firm, have entered into a deal to acquire Genesis, according to bankruptcy court documents filed Thursday. ReGen's deal to acquire Genesis is a 'stalking horse bid,' which sets the floor price to buy Genesis in the event of an auction. The private equity firm has invested in Genesis before, when it was on the verge of filing for bankruptcy for the second time in 2021, according to court documents. The operator had filed for Chapter 11 before in 2000 and emerged from restructuring in 2001. ReGen's initial $50 million investment in 2021, paired with a lease restructuring agreement with Genesis' largest landlord, allowed the operator to 'narrowly' avoid a bankruptcy filing, according to court documents. The private equity firm continued to invest in Genesis, and its investment totaled about $100 million. However, liabilities related to past expansions, 'years of financial stress and deferred capital expenditures,' pressures from the COVID-19 pandemic and inadequate Medicaid reimbursement prompted Genesis to file for Chapter 11 protections again on Wednesday. 'All told, while ReGen's cumulative investment of approximately $100 million (over approximately two years) allowed the Company to avoid bankruptcy and provided a liquidity runway to a business struggling with legacy liabilities and other business challenges, it was unfortunately insufficient to allow the Company to fully transform its business model and achieve long-term viability,' Louis Robichaux IV, co-chief restructuring officer, wrote in court documents Thursday. In initial filings, Genesis said it has up to 25,000 creditors, with liabilities between $1 billion to $10 billion. Genesis has faced other financial challenges in the past, including a nearly $54 million fine in 2017 from the government to settle allegations it violated the False Claims Act for submitting 'medically unnecessary therapy and hospice services, and grossly substandard nursing care.' Genesis joins a growing number of notable bankruptcies this year. In January, health system Prospect Medical Holdings filed for Chapter 11 protections. Last year, both medical center operator CareMax and hospital operator Steward Health Care filed for bankruptcy. Although healthcare bankruptcies declined in 2024, the sector still notched the second-highest number of filings in the past six years. Recommended Reading Healthcare bankruptcies declined in 2024: report
Yahoo
10-07-2025
- Business
- Yahoo
CVS Omnicare ordered to pay $949 million in government fraud case
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. A federal judge has ordered CVS to pay $948.8 million in penalties and damages in a whistleblower case alleging that the company's Omnicare division illegally charged the U.S. government for prescription drugs. Manhattan Judge Colleen McMahon imposed a $542 million penalty for what she called 'very big fraud' in her Monday order, and awarded $406.8 million in damages — three times the $135.6 million that a jury awarded in the spring, as required under the False Claims Act. Omnicare filed more than 3.3 million false claims between 2010 and 2018, according to court documents. CVS, which acquired the pharmacy benefits manager in 2015, denied the allegations and said it planned to appeal McMahon's decision. A former Omnicare pharmacist filed the lawsuit in 2015 accusing the PBM of improperly billing Medicare, Medicaid and the military's Tricare program for over $135 million in drugs that weren't actually covered by the programs. Omnicare — the largest long-term care pharmacy services provider in the U.S. — fraudulently dispensed drugs to elderly and disabled people in long-term care and assisted living facilities without valid prescriptions, according to the complaint. The Department of Justice joined the suit in 2019, and a jury ruled in favor of the government last spring. The False Claims Act allows whistleblowers to bring complaints on the government's behalf and share in potential damages. The law is a key weapon in the government's arsenal for combating fraud, and the driving force behind a major share of healthcare recoveries. The law requires tripling of damages, a stipulation that inflated CVS' penalty. The company argued that the $948.8 million award violates the Constitution's prohibition against excessive fines, but McMahon did not agree. 'Admittedly [the fine] is a very big number. But this was a very big fraud on the Government, one that lasted over almost a decade, and one that Omnicare was aware of but avoided taking steps to correct,' the judge wrote. And CVS is getting off relatively easy, McMahon noted. According to her order, following the letter of the FCA, which outlines a minimum penalty of $5,000 for every false claim, would result in an 'astronomical' minimum penalty of $26.9 billion on top of the damages. Still, CVS plans to appeal the judgment. 'This lawsuit centered on a highly technical prescription dispensing record keeping issue that was allowed by law in many states. The dispensing practices referenced were limited to Omnicare, ended in 2018, were used by many others in the industry at the time, and were accepted by CMS,' a spokesperson for the company said. 'There was no claim in this case that any patient paid for a medication they shouldn't have or that any patient was harmed. The decision on penalties is unconstitutional, especially given the fact that there is no evidence that a single patient suffered harm,' they added. If the healthcare juggernaut's appeal fails, the penalty is small hit in comparison to its annual revenue, which reached $372.8 billion in 2024. Still, it would mean a financial speedbump for CVS, which is struggling to adjust to reimbursement pressures in its legacy retail pharmacy business and higher medical costs for members in its Aetna health plans. Recommended Reading DOJ charges more than 300 in $14.6B healthcare fraud bust
Boston Globe
10-07-2025
- Business
- Boston Globe
CVS ordered to pay $949m over invalid prescriptions in federal lawsuit
Omnicare specializes in providing services to assisted-living communities, nursing homes, and other long-term care settings. The acquisition was CVS's attempt to broaden its presence in the specialty pharmacy business as it sought to capitalize on an aging population. Omnicare is now the largest long-term care pharmacy services provider in the country. Get Rhode Map A weekday briefing from veteran Rhode Island reporters, focused on the things that matter most in the Ocean State. Enter Email Sign Up Uri Bassan, a former Omnicare pharmacist in Albuquerque, N.M., first filed the suit in 2015. The US Department of Justice joined the suit in 2019. Both parties accused Omnicare of improperly billing Medicare, Medicaid, and Tricare prescriptions for patients in assisted-living communities, group homes, and other long-term care facilities without valid prescriptions. Advertisement CVS plans to appeal. 'This lawsuit centered on a highly technical prescription dispensing record keeping issue that was allowed by law in many states,' said Ethan Slavin, a spokesman for CVS, in a statement to the Globe on Thursday. 'The dispensing practices referenced were limited to Omnicare, ended in 2018, were used by many others in the industry at the time.' Slavin said the practices were accepted by the federal Centers for Medicare & Medicaid Services. Advertisement Slavin said there was no claim in the case that 'any patient paid for a medication they shouldn't have or that any patient was harmed.' A jury 'False claims in the healthcare industry cost every American,' said US Attorney Jay Clayton The False Claims Act allows whistleblowers to bring complaints on the federal government's behalf. The law is key for the government to combat fraud. The law requires tripling of damages, which inflated CVS' penalty. But the company argues the award violates the Constitution's barring of excessive fines. 'The decision on penalties is unconstitutional, especially given the fact that there is no evidence that a single patient suffered harm,' said Slavin. 'We plan to appeal once the judgment is entered.' In 2024, CVS Health reported McMahon wrote in her order that while the fine 'is a very big number,' this 'was a very big fraud on the government, one that lasted over almost a decade, and that Omnicare was aware of but avoided taking steps to correct.' Alexa Gagosz can be reached at
