When news broke Tuesday that the U.S. Department of Justice had entered into a whistleblower settlement with the state and city of New York worth more than $500 million, the Am Law Litigation Daily assumed some qui tam lawyer must be celebrating a whopper of a payday. But that doesn’t appear to be so.
The federal government alleged that New York state and New York City had inappropriately sought Medicaid reimbursements for speech therapy, transportation and other services between 1990 and 2001. As a part of the settlement, the city will pay the federal government about $100 million and the state will pay about $332 million. The state will also drop about $108 million in pending Medicaid claims. (Here’s the settlement agreement.)
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