On July 20, 2009, the State of New York and New York City agreed to repay $540 million to the federal government for alleged improper Medicaid payments for school-based services. The agreement settles two lawsuits filed under the federal False Claims Act. The False Claims Act allows a private person, often called a “whistleblower” to file civil lawsuits on behalf of the United States based on the person’s belief that improper claims are being submitted to the federal government. These lawsuits are often referred to as “whistleblower lawsuits” and, in accordance with the False Claims Act; the successful whistleblower is entitled to share in the recovery. In this case, the whistleblower’s share is $10 million.
2009_7_Legal Brief 2009 07 23_New York Settlement.pdf (26.64 kb)