Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 09 NOVEMBER 2016

DOJ Secures Its Largest False Claims Act Settlement Involving A Nursing Home Company

Troutman Pepper Locke LLP
Explore more from Troutman Pepper Locke LLP

The Department of Justice announced the resolution of claims that Tennessee-based nursing home company Life Care Centers of America, Inc. violated the False Claims Act...

United StatesLitigation, Mediation & Arbitration
John West
John West
Megan Conway Rahman
Megan Conway Rahman
Laura Anne Kuykendall
Laura Anne Kuykendall
Author LinkedIn connections

On October 24, 2016, the Department of Justice announced the resolution of claims that Tennessee-based nursing home company Life Care Centers of America, Inc. ("Life Care") violated the False Claims Act ("FCA") by knowingly causing its 200-plus skilled nursing facilities to seek reimbursement for excessive and unreasonable rehabilitation therapy services. Life Care and its owner Forrest L. Preston agreed to pay $145 million to resolve the claims against them, including the allegation that Life Care's fraudulent billing scheme unjustly enriched Preston. The settlement is DOJ's largest with a skilled nursing chain.

According to the allegations, under the seven-year scheme that began in 2006, Life Care engaged in a systematic effort to increase its Medicare and TRICARE billings by instituting company-wide policies designed to secure the highest level of reimbursement for rehabilitation therapy services and place as many beneficiaries in the highest reimbursement

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Tenth Circuit Stays Nationwide Eligibility Injunction For Class Of 2022 In Wisne v. NCAA

On August 21, 2026, the Tenth Circuit granted the NCAA’s stay request in Wisne v. NCAA, temporarily restoring the NCAA’s age-based eligibility rules pending resolution of the appeal. Three weeks earlier, Judge Sweeney of the District of Colorado had issued a nationwide injunction that permitted athletes in the Class of 2022 to pursue a fifth year of eligibility.
United StatesLitigation, Mediation & Arbitration
Buchanan Ingersoll & Rooney
Buchanan Ingersoll & Rooney
Article

“LEGAL ANALYSIS SO POOR THAT IT HARDLY DESERVES THE LABEL”: Fifth Circuit COA Destroys Federal Judge For Using AI And I Cannot Believe Lawyers Are Still Using This Junk

A Fifth Circuit Court of Appeals ruling harshly criticizes a federal district judge for relying on AI-generated content in legal orders, revealing fabricated facts and poor legal analysis. The decision raises critical questions about the use of generative AI in legal practice and whether lawyers who adopt such technology are compromising their ethical obligations of competence, confidentiality, and integrity.
United StatesLitigation, Mediation & Arbitration
Troutman Amin LLP
Troutman Amin LLP
Article

Supreme Court To Review Constitutionality Of Federal Home-Distilling Ban

The U.S. Supreme Court will review a constitutional challenge to an 1868 federal law banning home distilleries, creating an opportunity to resolve a circuit split between the 5th and 6th Circuit Courts of Appeals. The case centers on whether the prohibition violates the Constitution's Taxation Clause or represents a legitimate exercise of congressional power to prevent tax evasion.
United StatesLitigation, Mediation & Arbitration
Taft, Stettinius & Hollister LLP
Taft, Stettinius & Hollister LLP
Article

Show Your Work: California Federal Court Denies Preliminary Approval Of Data Breach Class Action Settlement

A federal court in California denied preliminary approval of a $2.3 million data breach settlement affecting over 220,000 individuals, finding seven critical deficiencies in the proposed agreement. The decision highlights the rigorous scrutiny courts apply to class action settlements, particularly regarding claims-made distribution processes, inadequate documentation of settlement value, and unexplained disparate treatment among class members.
United StatesLitigation, Mediation & Arbitration
Duane Morris LLP
Duane Morris LLP
Article

California Federal Court Denies TikTok’s Motion To Dismiss Children’s Privacy Claims Based On Prior Class Action Settlements

A federal court rejected TikTok's attempt to use two prior nationwide class action settlements—totaling over $93 million—to dismiss new privacy claims brought by minors alleging violations of the Children's Online Privacy Protection Act. The ruling hinged on whether the current plaintiffs were demonstrably members of the earlier settlement classes based solely on the pleadings, raising critical questions about the scope and enforceability of broad settlement releases in successive privacy litiga
United StatesLitigation, Mediation & Arbitration
Duane Morris LLP
Duane Morris LLP
Article

Venture Global Update: Galp Prevails In Latest LNG Commissioning Dispute

An ICC tribunal has ruled in favor of Galp in its dispute with Venture Global over the Calcasieu Pass LNG facility, finding that Venture Global breached its obligation to declare the facility operational in a timely manner. This decision adds to a series of contrasting outcomes in similar disputes involving other buyers, with damages yet to be determined in a hearing scheduled for 2027 or 2028.
United StatesLitigation, Mediation & Arbitration
Bracewell LLP
Bracewell LLP