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District Court Dismisses Medicare's Suit Seeking Reimbursement from Defendants, Insurers And Attorneys
December 22, 2010
In September 2003, several chemical companies and their insurers entered into a settlement to resolve class action claims related to alleged exposure to polychlorinated biphenyls (PCBs) in Alabama. The chemical companies and their insurers settled these claims for $300 million, in what is commonly referred to as the Abernathy settlement. The plaintiffs' attorneys in Abernathy received the proceeds of the settlement in their escrow accounts, from which they ultimately distributed settlements to individual claimants and obtained their fees, allegedly without reimbursing Medicare for medical payments associated with the plaintiffs' claims.
In December 2009, the U.S. government filed suit against chemical companies, insurers and several plaintiffs' attorneys who participated in the Abernathy settlement. United States of America v. Stricker, et al., No. 09-2423 (N.D. Ala. filed Dec. 1, 2009). In Stricker, Medicare sought reimbursement for payments that it had allegedly made for medical care provided to the settling class members. Medicare contended that the defendants and the insurers who participated in the Abernathy settlement were liable to Medicare for up to double the amount of medical expenses incurred by Medicare, under the Medicare Secondary Payer statute. Stricker was filed more than six years after the Abernathy settlement was approved by the court, and after more than 90% of the settlement funds were deposited into escrow.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.