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False Claims Act Statistics, News & Analysis

False Claims Act Stats: Going Local—A Close-Up Look at FCA Recovery Geography

With the 2016 DOJ fiscal year at an end, we are hard at work identifying trends and piecing together the story of FCA enforcement across the nation over the last twelve months. Today, we take a look at how recoveries have varied on the local level, slicing our data to see which federal district court and U.S. Attorney jurisdictions have been the most active this year. Bear in mind as you read that although this data is grouped by district, these are not necessarily recoveries made in district court. Indeed, plenty of recoveries nationwide are made through settlements without ever setting foot inside the courtroom – in these instances, we locate those recoveries in the district of the U.S. Attorney’s office identified as involved in the investigation.

With that caveat out of the way, on to the breakdown:

LLB Post_Total FCA Dollars Recovered_101416

Boston may be a destination spot for those looking to walk the Freedom Trail, but for an FCA defendant, a trip to the District of Massachusetts was likely to be anything but free in FY16. Massachusetts comes in as the number one district overall with an astonishing $921,337,613 in recoveries – almost twice as much as the Southern District of New York, pulling into second place with $538,515,387. One sleeper district to look out for in this group, however, is the Southern District of Florida. Though total recoveries in this fourth-place district amount to only $293,500,000, this amount was spread out across 74 individual recoveries as compared to the District of Massachusetts’ 17, making Florida’s Southern District the single most active district in the country this year.

   
Top 3 Recoveries in Jurisdiction
Top 5 Jurisdiction
Total FCA Dollars Recovered
Total Numbers FCA Recoveries
Defendant
Dollars Recovered
     


D. Mass. 


$921,337,613 


17 

Pfizer

Millennium Health

Kindred Health

$413,248,820

$237,000,000

$125,000,000

     


S.D.N.Y. 


 $538,515,387


11 

Novartis Pharm.

Salix Pharm.

L-3 Comm.

$390,000,000

$46,529,953

$25,600,000 

     


 D.N.J.


$412,100,275 


11 

Olympus Corp.

Freedom Mortg.

Biosound Med. Servs. 

$267,288,323

$113,000,000

$7,756,865 

     


 S.D. Fla.


$293,500,000 


74 

HCA Holdings

Ascension Health

Community Health Sys.

$15,800,000

$14,900,000

$13,000,000 

     

 M.D. Ga.

$245,261,951 

Tenet Healthcare

Sweet Dreams Nurse Anesthesia

$244,227,535

$1,034,416 

 

Breaking down the data further by industry, a picture starts to form around Health Care in particular:

LLB Post_Health Care FCA Dollars Recovered_101416

Here again we see the District of Massachusetts on top, as 16 of its 17 hefty recoveries in FY16 were in this industry. As for the Southern District of Florida, 100% of its recoveries this year were in Health Care, holding strong on the number four spot of this breakdown. This leaves the Southern District of New York and the District of New Jersey solidly in second and third place and the Middle District of Georgia hanging tight at number five, with its total almost entirely attributable to the Tenet Healthcare settlement that snuck in right under the wire at the end of September. Between that peach of a settlement and the numerous recoveries in the Sunshine State, the Eleventh Circuit was a rough locale this year for defendants in the field of health care.

   
Top 3 Health Care Recoveries in Jurisdiction
Top 5 Health Care Jurisdictions
Total Health Care FCA Dollars Recovered
Total Number Health Care FCA Recoveries
Defendant
Dollars Recovered
     


D. Mass. 


$919,087,613 


16

Pfizer

Millennium Health

Kindred Health

$413,248,820

$237,000,000

$125,000,000

     


S.D.N.Y. 


 $483,150,387


Novartis Pharm.

Salix Pharm.

Qualitest Pharm.

$390,000,000

$46,529,953

$22,440,000

     


 D.N.J.


$293,745,387 


8

Olympus Corp.

Biosound Med. Servs.

Edward J. Letko

$267,288,323

$7,756,865

$6,000,000 

     


 S.D. Fla.


$293,500,000 


74 

HCA Holdings

Ascension Health

Community Health Sys.

$15,800,000

$14,900,000

$13,000,000 

     

 M.D. Ga.

$245,261,951 

Tenet Healthcare

Sweet Dreams Nurse Anesthesia 

$244,227,535

$1,034,416 

 

Much like the proverbial young man, the concentration of FCA recoveries by dollar amount in the Defense industry shifts decidedly westward:

LLB Post_Defense FCA Dollars Recovered_101416

The Defense industry spread sees two California districts (Central and Eastern) and one Texas district (Eastern) snagging spots in the top five. Of course, not to be forgotten is the Southern District of New York with its single recovery in the number one dollar value position and the District of D.C. coming in at a respectable fourth place. With each district boasting relatively few individual recoveries at comparatively low dollar values (as opposed to Health Care), it is difficult to draw any conclusions about whether these districts will continue to hold their own in the next fiscal year or if they will be unseated by the next big recovery from an unknown district.

   
Top 3 Defense Recoveries in Jurisdiction
Top 5 Defense Jurisdictions
Total Defense FCA Dollars Recovered
Total Number Defense FCA Recoveries
Defendant
Dollars Recovered
     
S.D.N.Y.  
$25,600,000 
1

L-3 Comm.

$25,600,000

     

C.D. Cal.

 $22,000,000

2

Boeing

Coast Produce

$18,000,000

$4,000,000

     

E.D. Cal.

$13,000,000

2

Menlo Worldwide

Estes

$10,000,000

$3,000,000

     

D.D.C.

$12,750,000 

2

Netcracker

Computer Sciences Corp.

$11,400,000

$1,350,000

     

 E.D. Tex.

$10,400,000 

Centerra Servs. Int'l.

Armosource LLC 

$7,400,000

$3,000,000 

 

Finally, the illustrious category of Other Industries, which defies geographical definition almost as much as it does actual definition:

LLB Post_Other Industries FCA Dollars Recovered_101416

If anything, the names of the defendants in these Other cases reveals more than the location of their associated recoveries. Banks and mortgage companies take the unfortunate crown in this category as the defendants most likely to contribute to a federal district’s FCA recoveries outside the realm of Health Care or Defense. The only good news is that – unlike defendants in those two categories – there’s at least an outside chance you might have been defending yourself in Hawaii this year.

   
Top 3 Other Indus. Recoveries in Jurisdiction
Top 5 Other Industries Jurisdictions
Total Other Industries FCA Dollars Recovered
Total Number Other Industries FCA Recoveries
Defendant
Dollars Recovered
     

D.N.J.

$117,250,000

2

Freedom Morg.

Security Nat'l Mortg.

$113,000,000

$4,250,000

     
N.D. Ga.
 $83,000,000
1

Branch, Banking & Tr.

$83,000,000

     
E.D. La.
$82,600,000
1

BPXP

$82,600,000

     

D. Colo

$75,000,000

2

Franklin Am. Mortg.

Primary Res. Mortg.

$70,000,000

$5,000,000

     
W.D.N.Y.
$64,000,000
1

M&T Bank Corp.

$64,000,000

 

This has been only one part of our end-of-year data analysis extravaganza, all of which will culminate in a year-in-review webinar and summary blog post in early November. So, if you are eager for even more FCA number crunching, be sure to check back with us over the next few weeks to see what else we have in store.



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