I came across this unusual whistleblower case recently and thought I would write a blog post about it. In brief, a whistleblower filed a False Claims Act whistleblower claim against his employer hospital, alleging that the hospital was paying illegal kickbacks. In response, his employer filed a lawsuit against the whistleblower for failing to live up to his fiduciary duty to the company and alleging that his whistleblower claim was frivolous. I am writing about this case because the employer’s lawsuit is extraordinarily troubling and seems aimed at chilling any reports of fraud, including legitimate ones.
Have you witnessed fraud or kickback concerning a government contract? Are you considering becoming a whistleblower? You will need the help of an experienced Mississippi whistleblower attorney to guide you through the process and to attain your fair share of compensation. Contact Barrett Law now at (800) 707-9577 to attain the advice you need.
The False Claims Act and Medical Providers
You will likely remember from my earlier blog posts that the False Claims Act prohibits paying kickbacks or bribes in exchange for government contracts. In this case, Wheeling Hospital, Inc. v. Louis Longo (N.D. W. Va. 2019), the whistleblower, Mr. Longo, claimed that his employer was paying inflated payments to physicians in exchange for referrals to the hospital. This sort of behavior falls under the False Claims Act because a significant percentage of medical payments are made through the federal Medicare and Medicaid programs. The U.S. Department of Justice brought a False Claims Act case against Wheeling Hospital based on Mr. Longo’s complaint.
Wheeling Hospital recently sued Mr. Longo, claiming that he breached a fiduciary duty to Wheeling by not first reporting any fraud internally. A fiduciary duty is a legal duty to protect the company’s shareholders financially. The company had a policy mandating that employees report fraud internally. It is important to note that Wheeling had already fired him at the time he filed his complaint, however. Moreover, Wheeling’s lawsuit claims that Longo’s suit is really just an attempt to extort money from the hospital.
This case reminds me of SLAPP suits that were popular in the ’80s and ’90s. SLAPP stands for strategic lawsuit against public participation. In these cases, companies would sue individuals for defamation and other torts when the individual made the public aware that the company was engaged in some sort of wrongdoing. Ultimately, the First Amendment protected the reporting individual, but the point of the SLAPP suit was to have a chilling effect on corporate criticism, and it often worked. Here, it seems that Wheeling is making a similar claim. I will be watching this case out of West Virginia closely to see what a court ultimately decides, as the decision may be far-reaching.
What Should You Do if You are Considering Making a Whistleblower Claim?
Are you aware of kickbacks or other fraud occurring in the medical field? The reward for submitting a successful False Claims Act whistleblower claim can be significant, but you will only receive this sort of award with the help of an experienced whistleblower attorney. Too many people try to report fraud in an effort to become a whistleblower and only up ruining their careers without any reward. Contact Barrett Law now at (800) 707-9577.
Experienced whistleblower lawyer Barrett can provide you with the advice you will need to file a successful whistleblower case. Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower reward and losing your career and livelihood. Call us today. Our Mississippi Whistleblower Lawyer looks forward to making a difference for you.
