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Healthways to settle whistleblower lawsuit

March 13, 2009

Healthways Inc. said that it took a $40 million charge in its current first quarter related to the proposed settlement of a whistleblower lawsuit against the company.

 

The lawsuit, filed 15 years ago by a former employee, is related to the Nashville-based disease management company’s former Diabetes Treatment Center of America business. It will filed on behalf of the federal government and must be approved by the U.S. Department of Justice although the government did not intervene in the lawsuit.

 

The lawsuit alleged that Diabetes Treatment illegally paid doctors for referrals.
Under the proposed settlement, Healthways will pay the government $28 million. Another $12 million will cover costs and fees such as expenses of plaintiff’s attorneys.

Healthways said that it is settling the suit to avoid significant legal expenses and distraction. “This settlement is not an admission of any wrongdoing,” executives said.

 

Read Article: Tennessean

 

Posted By: Phoenix DUI Attorney

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