11 Recent Healthcare Lawsuits, Settlements

The following is a roundup of lawsuit updates, court holdings and settlements that involve the healthcare industry.

1. New Jersey Diagnostic Testing Center Owner Sentenced in Anti-Kickback Case
Ashokkumar BabariaMD, a radiologist who owned and operated Orange (N.J.) MRI, a diagnostic testing center, was ordered to forfeit more than $2 million in fraudulent claims, pay a $25,000 fine and was sentenced to 46 months in prison for bribing physicians for testing referrals.

2. HealthSouth Receives 7 Additional Subpoenas From DOJ
The Department of Justice issued seven more subpoenas to Birmingham, Ala.-based HealthSouth's hospitals in connection with a Medicare fraud investigation.

3. Illinois Supreme Court: Good Samaritan Act Doesn't Shield On-Duty Emergency Physicians
The Illinois Supreme Court held the Good Samaritan Act, which protects from liability physicians who have no obligation to treat a patient and volunteer to do so in an emergency situation, does not extend liability protection to on-duty emergency department physicians who do not bill for their services.

4. West-Ward Pharmaceuticals to Pay $10M in Medicaid Fraud Case
Eatonton, N.J.-based West-Ward Pharmaceuticals agreed to pay $10 million to resolve allegations the pharmaceutical company inflated prescription drug prices to overcharge Texas' Medicaid program

5. 3 New York Hospitals Face Class-Action Suit Over Medical Record Fees
Mount Sinai Hospital, Beth Israel Medical Center and Montefiore Medical Group Co-op City, all based in New York City, were named as defendants in a class-action lawsuit alleging the hospitals, along with Alpharetta, Ga.-based HealthPort Technologies — a company that provided document copying services to the hospitals — overcharged patients for copies of their medical records.

6. 3 Found Guilty in $15M Medicare Fraud Scheme in Detroit
A federal grand jury convicted a physical therapist, a physical therapy assistant and an unlicensed medical school graduate in a $15 million Medicare fraud scheme.

7. Court Dismisses Most of Class-Action Lawsuit From 2011 TRICARE Data Breach
A federal judge dismissed most of the TRICARE recipients from the class-action lawsuit filed against TRICARE and Science Applications International Corporation, a scientific, engineering and technology applications company, which was filed as a result of a 2011 data breach.

8. First Circuit Applies First-To-File Rule in False Claims Act Case
The First Circuit held when two False Claims Act whistle-blower complaints are filed arising out of the same underlying facts, the first complaint filed will preclude the second complaint.

9. New England Compounding Pharmacy Reaches $100M Settlement for Meningitis Outbreak
The compounding facility linked to a 2012 meningitis outbreak that killed 64 people agreed to a settlement of $100 million.

10. Dr. Tariq Mahmood Rescinds Guilty Plea, Gets Ready For Trial
Tariq Mahmood, MD, rescinded his guilty plea and hired a new attorney to represent him at his trial concerning his involvement in a Medicare and Medicaid fraud scheme from 2010 to 2013.

11. Federal Court Dismisses LabMD's Suit Against FTC
A federal court dismissed Atlanta-based LabMD's suit alleging the FTC does not have the power to broadly regulate data security and the FTC failed to inform LabMD of how its data security measures fell short relative to a data breach at the company.

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