Skip to Content

Get Your FREE Consultation


Mississippi Medical Equipment Company Settles Whistleblower Lawsuit for $1.8 Million

September 28, 2012

Pinnacle Medical Solutions, a Mississippi-based medical equipment company, has agreed to pay approximately $1.8 million to resolve a 2009 whistleblower lawsuit. The whistleblower lawsuit was brought by two former Pinnacle employees pursuant to the False Claims Act. The lawsuit asserted that Pinnacle defrauded government insurance groups out of money for delivery of diabetic supplies to patients.

One of the whistleblowers reported to Pinnacle management, shortly after her hiring in 2007, that there were fraudulent practices in the company’s handling of insurance reimbursements. When she suggested the company repay the money, Pinnacle management ignored her requests and fired her in 2009. She then reported problems to the U.S. Department of Health and Human Services (“DHHS”). An investigation revealed that from September 2006 through May 2009, Pinnacle submitted false claims to Medicare and the Federal Employees Health Benefits Program for blood glucose monitoring strips and lancets that either were for more or different supplies than Pinnacle had actually shipped, for more supplies than had been ordered, or that lacked supporting documentation for the supplies. When the issues were reported to DHHS, Pinnacle made a voluntary repayment of $236,204. Under the settlement announced on September 5, 2012, Pinnacle agreed to repay an additional $1,771,522. As a further condition of the settlement, Pinnacle is also required to enter into a Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General, pursuant to which the company will be monitored for a period of five years to ensure that it complies with all federal healthcare program rules.

Under the False Claims Act, the whistleblowers may receive an award of 15-25% of the money recovered in the case. More and more, state and federal health insurance programs are relying on whistleblower suits to help recover money out of which the government has been defrauded.

No Win, No Fee

Review Us

Martin & Jones, PLLC logo

“We would like to express our gratitude to you (Hunt Willis) for accepting our case. First of all, when I called this law firm, a very sweet and kind lady answered the telephone and gave me assurance by asking and going over the accident with me, while my husband was in the hospital. I felt assured I was doing the right thing for us. She was so helpful in so many ways. What a professional lady. Secondly, we are much pleased that you have settled this case with the insurance company to receive the proper amount to assist us in so many ways. My husband and I are very happy with you and the firm in handling our case. You made us have confidence in your professional and integrity along with your assistant Ms. Routh, when you both came to see us in our home, in which we saw your compassion and thoughtfulness at that time. We will never forget what you have done for us, and we thank the lord for directing me to contact this firm. I’m glad I did.” 

Contact Our North Carolina Personal Injury Law Firm

for a Consultation for Your Accident or Medical Malpractice Claim

Call us at 800-662-1234
No Win, No Fee

The law firm you choose makes a difference. If you are the victim of an accident or an illness that someone else caused, the North Carolina personal injury law firm of Martin & Jones has the depth of experience, skills and sensitivity to make your road to recovery as smooth as possible. Whether you have experience with the legal system or have never hired a medical malpractice or personal injury lawyer before, our attorneys and staff will do our best to answer your questions, provide clear advice and prepare you and your family for what to expect. If you would like more information or to meet with one of our attorneys, please fill out the form below or call us at 800.662.1234.