Last-Minute DOJ Hangup Scuttles $1.6M False Claims Deal

Law360, Los Angeles (December 19, 2012, 1:51 PM EST) -- A Florida federal magistrate judge on Tuesday said that a holistic medical center should be allowed to back out of a $1.6 million settlement with a qui tam plaintiff suing over alleged Medicare corruption, citing the U.S. government's bid to add administrative and tax penalties to the deal.

U.S. Magistrate Judge Ted E. Bandstra recommended that a federal district judge allow MCCI Group Holdings LLC to scratch its deal with relator Marc Osheroff because of the U.S. Department of Justice's demand. Osheroff alleges that MCCI and others...
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