NYC Pays $70M To Settle US Atty's Medicaid Abuse Suit

Law360, New York (October 31, 2011, 9:54 PM EDT) -- New York City will pay the U.S. government $70 million to settle a suit claiming the city overcharged Medicaid for a program that provided cleaning, shopping and other basic services to beneficiaries, according to court documents filed Monday.

U.S. Attorney Preet Bharara filed a complaint against the city in New York federal court in January, asserting violations of the False Claims Act, unjust enrichment, negligence and other claims over the city's alleged mishandling of the 24-hour Personal Care Services program.

The city acknowledges that from 2000...
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