March 16, 2009
Healthways, Inc. announced that it has agreed to a proposed settlement to resolve a whistleblower lawsuit filed under the False Claims Act.
The suit, which the Nashville Post says the government did not join, alleged that the company’s former Diabetes Treatment Center of America business paid doctors for referrals.
The company has agreed to pay approximately $40 million to resolve the 15 year old suit: $28 million to the government and another $12 million in attorney’s fees and other costs.