Bracker & Marcus LLC: Beaumont Hospital to Pay $84.5 Million False Claims Act Settlement

Published: Aug 02, 2018

 

The settlement resolves a qui tam lawsuit filed by whistleblower David Felten, M.D., Ph.D alleging physician kickbacks for referrals.

DETROIT, Aug. 2, 2018 /PRNewswire/ -- Bracker & Marcus LLC and Caplan Cobb LLP announced today an $84.5 million settlement with William Beaumont Hospital to resolve a False Claims Act lawsuit brought by client David Felten, M.D., Ph.D.

Dr. Felten, a MacArthur Genius Grant recipient recently listed among the "Thirty Most Influential Neuroscientists Alive Today," is widely credited with creating the field of psychoneuroimmunology. Fortunately for the taxpayers, he is also a man of impeccable integrity.

Corporate Culture Built on Kickbacks

When Dr. Felten joined Beaumont as Vice President of Research in 2005, he discovered a system riddled with kickbacks to referring physicians. "My findings raised a deeply troubling question," said Dr. Felten. "If someone demonstrates a lack of integrity in their financial dealings, why should I believe that they will show integrity in clinical practice or research?"

When internal reporting failed, Dr. Felten felt his only option was to file a False Claims Act lawsuit, which he did in 2010. Three more soon followed, and Dr. Felten and his co-relators will receive between 15%-25% of the $84.5 million recovery.

Protecting Patients at Personal Cost

"It is truly an honor to represent Dr. Felten," said Julie Bracker. "At the apex of an incredible career, he acted with integrity and was rebuffed, threatened, forced out, and blackballed. Despite these staggering personal costs, he protected patients and put a stop to kickback schemes that raise the costs of healthcare for everyone."

Dr. Felten's retaliation claims are still being litigated. "Dr. Felten's courage in reporting unlawful conduct to the government subjected him to retaliation and significant reputational harm," said Michael Caplan. "We intend to aggressively pursue Dr. Felten's rights and obtain a full recovery on his behalf."

Public-Private Partnership

"This case is a testament to the FCA's public-private partnership," said Jason Marcus. "DOJ attorney Laurie Oberembt and the Eastern District of Michigan USAO--in particular Peter Caplan, Leslie Wizner, and Carolyn Bell-Harbin--worked tirelessly to reach this stellar result."

"The government attorneys were extremely helpful and supportive," said Dr. Felten. "Thanks to Julie Bracker and the DOJ attorneys for having the courage and fortitude to bring this to light."

False Claims Act lawyers Julie Bracker and Jason Marcus have a combined 22 years of experience representing whistleblowers nationwide. Since 2015, when they founded Bracker & Marcus LLC, they have recovered more than $100 million for the taxpayers.

Caplan Cobb LLP is a complex trial and litigation firm in Atlanta, Georgia. Over the course of his career, Mike Caplan has recovered over $250 million in business tort cases, class actions, and whistleblower actions.

The case is captioned United States ex rel. Felten v. William Beaumont Hospitals, 2:10-cv-13440 (E.D. Mich.).

For more information about Bracker & Marcus LLC, visit www.FCAcounsel.com or call (770) 988-5035.

For more information about Caplan Cobb LLP, visit www.caplancobb.com or call (404) 596-5600.

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SOURCE Bracker & Marcus LLC

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