Shoe Insert Maker Sued Over Whistleblower's Ouster

Law360, New York (August 22, 2012, 12:49 PM EDT) -- A Tennessee company that manufactures shoe inserts for diabetics fired an employee who complained about Medicare fraud and illegal telemarketing practices, according to an amended whistleblower suit filed Tuesday that drops the company's now-imprisoned owner as a defendant.

Plaintiff Charles Webb claims he was fired from his job at Cordova-based Stat Diagnostics Inc. — operated under the name NewGen — after complaining that the company was cold-calling Medicare patients to sell shoe inserts. The fraud also involved selling inserts that were not custom-made but billing Medicare...
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