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New York Settles False Claims Act Suit for $540 Million

The state and city of New York have agreed to pay a total of $540 million to resolve allegations of Medicaid fraud.  The suit, originally brought under the qui tam provisions of the False Claims Act, alleged that between 1990 and 2001 the state of New York knowingly submitted claims for reimbursement to the federal government for school-based health care services that did not qualify for Medicaid reimbursement.  The whistleblower who exposed the fraudulent billing practices will receive $10 million as his relators’ share of the settlement proceeds.  To learn more about The Employment Law Group® law firm’s False Claims Act Practice, click here.

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