Kmart Whistleblower Receives $300K Settlement under False Claims Act

Posted on behalf of Phillips Law Group on Nov 08, 2013 in Criminal Law

Mark Kirsch, the former Kmart employee who blew the whistle on the retail giants unethical dealings with the U.S. Government, was awarded over $309,687 in settlement compensation, according to a press release from the FBI on October 21.

Kirsch alleged that Kmart Corp. broke federal laws when the company billed government agencies like Medicare, Tricare, and the Federal Employee Health Benefits Plan for the full amount of medications included in a prescription, but only disbursed a portion of them, saving the rest to add to inventory.

Kirsch filed the suit in Detroit, and in addition to Michigan the other states that will be receiving Medicaid program refunds are Alabama, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Montana, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, Puerto Rico, and the Virgin Islands.

Under the False Claims Act, citizens can file lawsuits against corporations on behalf of the government in order to protect consumers and the general public. Whistleblowers who speak out against the companies file a qui tam suit which can entitle them to 15-30% of the total settlement amount.

Though the False Claims Act has been in existence since the American Civil War it has evolved over the years, and thanks to additional amendments whistleblowers can be awarded settlements upwards of several million dollars.

Citizens with concern for public welfare are encouraged to contact our firm if they are aware of illegal dealings, defective products, or other corporate false claims.

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