Healthways, US Settle Kickback Case For $40M

Law360, New York (March 13, 2009, 12:00 AM EDT) -- Healthways Inc. on Friday announced a $40 million settlement with the U.S. government in a 15-year-old whistleblower lawsuit alleging a kickback scheme at a diabetes care chain formerly owned by the Nashville-based health care provider.

According to a statement from the company, approximately $28 million of the settlement will be paid directly to the government while the remaining $12 million will go toward various costs and fees related to the settlement.

The lawsuit, brought in 1994 by a former employee of Diabetes Treatment Center of America...
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