Three whistleblowers have asked a federal judge in Massachusetts to reconsider her dismal of a False Claims Act case in which a large medical supplier was accused of converting customers to another company in exchange for discounts and other benefits.
The whistleblowers who exposed the problem said that the arrangement between CCS Medical and Coloplast Corp. represented “kickbacks,” and that the case should be reopened. The U.S. District Court judge had ruled that CCS had protection under the safe harbor provision of the False Claims Act.
However, the whistleblowers are pressing on, arguing that allowing for discounts in exchange for poaching customers from its competitors was an “unlawful quid pro quo,” and that CCS violated the law when it submitted false claims to Medicare.
In the lawsuit, the relators claimed that there were kickback relationships in place across the continence care and ostomy goods industry. The three whistleblowers are all ex-employees of Coloplast, including its former president. At this time, the federal government has no plans to intervene in the case against CSS.
The relators, in backing up their claims, quoted the Office of Inspector General’s advisory opinion declaring that any businesses or organizations found to be paying, providing, receiving or soliciting payment to induce referrals, and then billing to a U.S. government healthcare program, would be tried for a criminal offense.
The difficulties these three whistleblowers are facing are a reflection of some of the challenges individuals like them face when trying to do the right thing and expose potential wrongdoing. Because of this, it’s important for whistleblowers to work with an attorney before going public with their claims.
To learn more about this issue, consult a skilled Dallas attorney at Whistleblower Law for Managers right away.
