Articles Posted in False Claims Act

Medical Waste and Safe HandlingIn October 2015, Illinois Attorney General Lisa Madigan announced a financial settlement with Stericycle, Inc., a medical waste disposal company. The settlement totaled more than $26 million. The case resolution is in response to the Illinois-based company overcharging numerous government entities located in various states within the US without contractual authorization. The state-accepted settlement Results many of the violations the company made when overcharging millions of dollars to unsuspecting customers.

Civil action was initiated in 2008 by a whistleblower, who was a former Stericycle employee. The whistleblower filed a “qui tam” lawsuit in U.S. District Court under the Federal False Claims Act and numerous equivalent state statutes. As a part of the settlement terms, the state of Illinois will receive approximately $3 million of which $1.6 million will be distributed to nearly 350 local and state government entities in Illinois that received the company’s services and became victims of Stericycle’s fraudulent pricing increases.

Price Increase Violation

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