Arnold Law Firm: Whistleblowers Help the California Department of Justice and California Department of Insurance to Recover $18.275 Million
SACRAMENTO, Calif., Feb. 7, 2023 /PRNewswire/ -- M. Anderson Berry with the Arnold Law Firm and Michael A. Hirst with the Hirst Law Group provided counsel for the two whistleblowers, both former employees of The Pill Club (also called "Favor"), who brought fraud allegations against the company, alleging that it defrauded government and private insurers by submitting false claims for contraceptive prescriptions and services that were knowingly in violation of law. The Court unsealed the case today in accordance with the terms of settlement agreements entered into between The Pill Club, the California Department of Justice ("DOJ"), the California Department of Insurance ("CDI"), and the whistleblowers.
Under the terms of the settlement agreements, The Pill Club ("TPC") agreed to pay $15 million to DOJ and $3.275 million to CDI.
Cindy Swintelski Schwartz and Happy Baumann, both former nurse practitioners at TPC, filed the complaint under seal in March 2019 pursuant to the California False Claims Act ("FCA") and the California Insurance Fraud Prevention Act ("IFPA"). They alleged that the company knowingly and routinely defrauded public and private insurers by failing to provide...
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