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The golden whistle, cont'd

And the qui tam jackpots just keep coming:

A onetime Illinois HMO was hammered with a $334 million judgment [last month], the largest of its kind ever in northern Illinois and an amount almost equal to the company's profits since it was founded....

The case, brought by a civil whistleblower and then joined by federal authorities and the state attorney general's office, charged that Amerigroup cherry-picked "healthies" and purposely avoided women in their third trimester of pregnancy because they cost more to insure....

The verdict nearly equals the $384 million in profit that Amerigroup has made since it was founded in 1994, Jenkins [company spokesman Kent Jenkins, Jr.] said....

Whistleblower Cleveland Tyson of Buffalo Grove, former vice president of government relations, will get 15 percent to 25 percent of the total award -- a benefit allowed under the Fraud Claims Act, designed to encourage whistleblowers.

Those of us who are not fond of qui tam/whistleblowing laws note that they reward informants and their lawyers far in excess of any plausible desert. In this case, Tyson would get $50 million to $83 million if the reported numbers hold up.



Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute

Katherine Lazarski
Press Officer,
Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.