James Cast, et al. v. National Cardio Labs LLC, Cardiac Monitoring Service LLC
Published: Jul. 31, 2010 | Result Date: Jul. 8, 2010 | Filing Date: Jan. 1, 1900 |Case number: SA CV04-0050-DOC (Anx) Settlement – $3,600,000
Court
USDC Central
Attorneys
Plaintiff
Lisa A. Palombo
(Office of the U.S. Attorney)
Donald R. Warren
(Warren Benson Law Group)
Defendant
Mark S. Hardiman
(Nelson Hardiman LLP)
Facts
Defendants National Cardio Labs LLC and Cardiac Monitoring Service LLC, both based in Orange County, provided heart monitor services to Medicare, TRICARE, and health insurance carriers contracted through the federal government. It operated as an independent diagnostic testing facility that received, analyzed, and printed out data from heart monitors and other devices.
Two former employees and purported whistleblowers, plaintiffs James Cast and Stanton Crowley, joined the federal government in a suit against defendants, pursuant to the federal False Claims Act.
Contentions
PLAINTIFFS' CONTENTIONS:
Cast and Crowley claimed defendants were liable for knowingly submitting false healthcare claims for cardiac and blood pressure diagnostic testing the insurance programs between 1998 and 2004. They alleged that defendants charged for services that were not actually provided, for services it could not perform, or for those for which it had already been paid.
Result
The parties settled. National Cardio paid the federal government almost $2.3 million and agreed that the government keep an additional $584,000 that had been seized by the FBI as part of an asset forfeiture action. The balance of $720,000 must be paid by July 21. In total, National Cardio agreed to pay $3.6 million. Cardiac Monitoring paid an additional $2,198,442. Cast and Crowley will receive $1,115,614 from the settlements.
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