$234 Million Dollar Whistleblower Settlement

According to Amerigroup’s website, they are a company “dedicated exclusively to caring for the financially vulnerable, seniors and people with disabilities through publicly-funded programs”. This past Tuesday they settled the largest jury verdict ever awarded under the False Claims Act to the tune of $234 million

In 2006, Cleveland Tyson, a former Amerigroup VP of government relations blew the whistle on the organization. According to the Denver Post article Amerigroup ”deliberately avoided enrolling recipients with costly health conditions or who were pregnant and in their third trimester. These actions were taken while Amerigroup received Illinois Department of Public Aid (IDPA) payments calculated on Amerigroup providing healthcare to all enrollees.”

On a side note, under federal whistleblower law, Tyson stands to collect 15 to 25 percent of the final judgment.

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