Hagens Berman Sobol Shapiro Cases

Novation

Date Filed: February 20, 2007

Court: U.S. District Court

Location: Dallas, TX

Hagens Berman Sobol Shapiro has filed a lawsuit on behalf of the state of Texas and the United States government against Novation, a medical supply company. The suit claims Novation and others conspired to inflate the cost of medical supply contracts, which directly affected the costs borne by Medicaid and Medicare programs.

The suit was profiled in a New York Times story (READ STORY).

According to the complaint, Novation negotiates medical supply contracts worth $20 billion annually for a third of the nation's hospitals and has been using its negotiation powers to secure kickbacks and other illegal remuneration from medical supply vendors as payment for awarding coveted contracts.

The filed suit claims Novation and the other defendants are violating the Federal Civil False Claims Act and the Texas Medicaid Fraud Prevention Act.

Medical suppliers named in the filed complaint include Johnson & Johnson, Becton Dickinson & Co., Heritage Bag Company, Cardinal Health, Allegiance Corporation, Nycomed Inc., Ben-Venue Laboratories, DuPont Co., Bristol-Myers Squibb Co., Abbott Laboratories and Merck & Co.

If you have information about Novation, its business practices or other similar cases, the attorneys at Hagens Berman Sobol Shapiro would like to talk with you. You can e-mail the firm at info@hbsslaw.com.