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Qui Tam Case Example New York

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New York Qui Tam Whistleblower Case Example:
In December, 2002, Columbia University agreed to pay $5.1 million to settle allegations that it defrauded Medicaid when its obstetricians routinely billed Medicaid for deliveries that were actually handled by certified midwives.

In November 2000, four brokerage firms (Everen Securities, Kidder Peaboddy & Co., Donaldson Lufkin Jenrette Securities Corp, and Bear Stearns & Co.)agreed to pay approximately $14.7 million to settle a Federal qui tam lawsuit filed in New York, which alleged that they artificially lowered securities' yields by pricing them in excess of their fair market value.

In May 2001, the Strandflex Division of Maryland Specialty Wire, Inc. agreed to pay the government $1 million to settle a Federal qui tam lawsuit filed in New York, that alleged that the company failed to properly test steel cable for control systems of military aircraft.

The purpose of the Qui tam provisions of the Federal False Claims Act is to encourage private individuals who are aware of fraud being perpetrated against the government to bring such information forward.

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