Tennessee diabetes company settles $40 million whistleblower lawsuit

2009-03-21 02:47:09 (GMT) (JusticeNewsFlash.com - Government, Justice News Flash)

Nashville based Healthways Inc. settles $40 million federal whistleblower claim

Nashville based Healthways’ Diabetes Treatment Center of America to pay $40 million.

Nashville, TN (JusticeNewsFlash.com)–A federal whistleblower lawsuit filed 15 years ago by lawyers representing a former employee of a Healthways Inc., center may settle for $40 million. Nashville based Healthways owned and operated the former Diabetes Treatment Center of America which was the named defendant in the whistleblower lawsuit. According to court documents filed by attorneys, the Diabetes Treatment Center of America illegally paid doctors for referrals.

The proposed court settlement is waiting for approval by the judge. The federal whistleblower claim is usually initiated by lawyers on behalf of the federal government and this type of legal action must be approved by the U.S. Department of Justice (DOJ) www.usdoj.gov. Federal prosecuting attorneys did not intervene in the litigation agreement which proposes Healthways pay the government $28 million in fines for federal violations. Healthways company executives are not admitting to any corporate wrongdoing in the settlement of the case and state they have chosen to avoid further legal expenses and distraction.

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