Whistleblower Successes

COUNTRYWIDE FINANCIAL (Mortgage / Appraisal Fraud)

Hagens Berman represented the first Countrywide and Bank of America whistleblower challenging widespread mortgage fraud through fraudulent appraisal and underwriting activity committed by Countrywide Financial Corp. (and later Bank of America) in U.S. ex rel. Lagow v. Countrywide Finan. Corp. (E.D.N.Y.) earning our client a multimillion-dollar award from the more than $1 billion-dollar settlement. This case rang in a new era of mortgage fraud enforcement that continues to this day.

BANK OF AMERICA CORP. (Mortgage / Servicing Fraud)

Hagens Berman also represented another Bank of America whistleblower challenging Bank of America’s failure to provide benefits to homeowners under the Home Affordable Mortgage Program in U.S. ex rel. Mackler v. Bank of Amer. Corp. (E.D.N.Y.) earning our client a large award from the same billion-dollar settlement. This case commenced a wave of litigation on behalf of homeowners wrongly denied mortgage relief by banking giants.

AMGEN (Health Care / Pharmaceutical Fraud)

Hagens Berman represented an esteemed physician and research scientist in a case challenging unlawful conduct by pharmaceutical giant Amgen Inc. in the health care fraud case U.S. ex rel. Horowitz v. Amgen Inc. (W.D. Wa.) earning our client a multimillion-dollar award. This case drew attention to several unlawful pharmaceutical industry practices, including relationships with medical providers and drug industry brokers.

US WORLDMEDS LLC (Health Care / Anti-Kickback Statute)

Hagens Berman represented the Senior Medical Director at US WorldMeds in this settled False Claims lawsuit, U.S. ex rel. Dr. v. US WorldMeds LLC (W.D. Wa. / D. Conn.), challenging the company’s off-label promotion and unlawful kickbacks to medical providers for use of its injectable products. This successful case, settled in 2019, highlighted the improper relationships between pharmaceutical/medical device/drug manufacturers and medical providers who agree to use their products and the critical importance of enforcing the requirements of the Anti-Kickback Statute through the False Claims Act.

MEDTRONIC (Health Care / Medical Device Fraud)

Hagens Berman represented both a nationally ranked sales representative and a medical device engineer in this settled lawsuit, U.S. ex rel. Nowak v. Medtronic Inc. (D. Mass.), challenging Medtronic’s off-label promotion of medical devices. This important case, which we settled, highlighted an industry practice of off-label marketing and promotion of medical devices approved by the FDA as one class of device, though promoted for higher-risk use.

PFIZER (Health Care / Pharmaceutical Fraud)

We represented an expert physician and scientist in the False Claims Act suit, U.S. ex rel. Polansky v. Pfizer, Inc. (E.D.N.Y.) challenging the company’s alleged off-label promotion and marketing of the blockbuster statin drug Lipitor, at one time the most profitable drug in America.

BROOKHAVEN MEMORIAL, TRINITAS HOSPITAL, ET AL. (Health Care / Hospital Billing Fraud)

Hagens Berman represented health care finance expert Anthony Kite in this complex, declined False Claims Act litigation, U.S. ex rel. Kite v. Besler Consult., et al. (D. N.J.), against several large hospitals who committed Medicare fraud through false claims for “outlier” payments. Mr. Kite’s diligent efforts resulted in a multimillion-dollar award to him.

CENTER FOR DIAGNOSTIC IMAGING (Health Care / Provider Billing Fraud)

We represented two whistleblowers, a physician and health care executive, challenging Center for Diagnostic Imaging, Inc.’s violation of anti-kickback laws through its presentment of false claims to the government in U.S. ex rel. West v. Center for Diagnostic Imaging, Inc. (W.D. Wa.). In this complex, declined case, we recovered additional funds for the government and awards for our clients.

SOUND INPATIENT PHYSICIANS (Health Care / Provider Billing Fraud)

Hagens Berman represented a former regional vice president of Sound Physicians in this health care fraud case challenging widespread “upcoding” in support of health care fraud in U.S. ex rel. Thomas v. Sound Inpatient Physicians, Inc. (W.D. Wa.). This case resulted in a large settlement and award to our client.

MODDHA INTERACTIVE, INC., ET AL. (SEC Whistleblower Case)

Hagens Berman represented the whistleblower who sparked the successful investigation and prosecution of this “hi-tech scam” investment fraud case that was resolved by the SEC in 2020. The violations of federal securities laws are set forth in the SEC’s complaint.

BATS / DIRECT EDGE STOCK EXCHANGES (SEC Whistleblower Case)

In one of the first successful SEC whistleblower cases, our whistleblower attorneys represented Haim Bodek, a leading algorithmic trading expert, in his complaint against BATS Global Inc. / Direct Edge Holdings challenging the unlawful preferential treatment it gave certain preferred high-frequency trading companies. Hagens Berman’s case resulted, in 2015, in the largest SEC fine ever imposed on a U.S. financial exchange. Mr. Bodek’s work was twice reported on the front page of The Wall Street Journal and he was rewarded for his work.

NEW YORK STOCK EXCHANGE (NYSE) (SEC Whistleblower Case)

Our firm also represented a whistleblower behind the 2018 SEC action against the New York Stock Exchange (NYSE) which resulted in a record-tying fine against the large financial exchange (tying the fine in the BATS action also triggered by our client).
SEC Order
Bloomberg Article

NAVINDER SARAO / NAV SARAO FUTURES LTD. (CFTC Whistleblower Case)

In the most prominent CFTC whistleblower action since the program began, Hagens Berman represented the anonymous whistleblower who identified, through expert, proprietary analysis, a previously undetected cause of the 2010 market “Flash Crash,” resulting in the first ever Department of Justice prosecution and guilty plea following extradition of a foreign market manipulator. Our client will soon be awarded.
DOJ release
CFTC release 

CARGILL INC. (CFTC Whistleblower Case)

Hagens Berman represents the whistleblower responsible for the CFTC’s action against the largest privately held corporation in the United States, which agreed to pay an eight-figure civil penalty from the CFTC for providing inaccurate information on swaps and failures to supervise. Our client will be awarded.
Order
CFTC release