New Jersey Appeals Court Gives State Larger Chunk of Whistleblower Awards

A whistleblower who was awarded $1.2 million in a False Claims Act suit must pay state taxes on the entire amount of the award, even if the amount paid in legal fees and portions of the proceeds were shared with other relators, a New Jersey appeals court ruled Thursday. Anthony Kite, who filed a whistleblower suit accusing several hospitals of overbilling Medicare by as much as 400 percent, was able to deduct his legal fees for the case from his federal income taxes. But he must pay state tax...
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$663 Million in Penalties for Maker of Guardrail

A Texas federal judge handed down a $663 million judgment Tuesday against Trinity Industries, the guardrail maker accused of producing a faulty product that can jam and spear through vehicles. The judgment stems from the trial held last year in a whistle-blower lawsuit filed by Josh Harman, a competitor who discovered in 2011 that Trinity had made a critical change to the dimensions of its ET-Plus guardrail in 2005, but failed to tell federal regulators as required by law. The jury found t...
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