Too many of our nation's top companies have engaged in misconduct that has drained our nation's treasury.
Philadelphia, PA (PRWEB) June 06, 2014
Nearly 50% of the 50 largest corporations in the United States have settled allegations of fraud in their dealings with the federal government, according to analysis of the 2014 list of the Fortune 500 by Young Law Group. Twenty four of the top 50 public companies in America by revenue have been accused of defrauding the United States government and settled those allegations with a monetary payment. Because many have done so in settlements that did not admit liability, it is impossible to determine accurately how many have actually engaged in fraud.
Nevertheless, nearly 20% of the businesses on the Fortune 500 this year have faced accusations of acting in violation of the False Claims Act and resolved the allegations through a monetary payment. The complete list is available at: http://eganyoung.com/fortune-500-fca-settlements/
The top of the Fortune 500 is particularly well represented by companies which have settled allegations of fraud in the past. The nation’s three largest companies, Wal-Mart, Exxon Mobil and Chevron, have all paid settlements under the False Claims Act. Of the twenty two companies with more than $100 billion in revenue, thirteen (59%) have paid money back to the government in a settlement.
"We expect the number of large companies paying money back to the U.S. government will rise as more of the cases filed in the last three years work through the system," said James J. McEldrew, III, Of Counsel to Young Law Group. The number of qui tam lawsuits filed by relators has set a record each of the last two years. *
"Too many of our nation’s top companies have engaged in misconduct that has drained our nation’s treasury," said Eric L. Young, Managing Partner of Young Law Group. "We need more whistleblowers to come forward and report fraud when they discover evidence of it."
The False Claims Act is the law passed by Congress in 1863 to authorize private individuals, known as relators, to bring a qui tam lawsuit on behalf of the federal government to recover money it has lost due to false claims. The False Claims Act has been significantly strengthened through amendments starting in 1986, when Congress authorized treble damages and increased awards for eligible whistleblowers to 15 to 30 percent.
Since 1986, lawsuits initiated by whistleblowers have recovered more than $27 billion on behalf of the United States. ** Still, estimates are the United States loses more than $50 billion every year to health care fraud and improper payments. ***
The Fortune 500 ranks U.S. incorporated companies operating in the United States and filing a financial statement with a government agency. Businesses are ranked based on their total revenues. In 2014, it took revenues of $4.9 billion to make the list. This year’s list was released on Monday, June 2, 2014 and is available at http://fortune.com/fortune500/wal-mart-stores-inc-1/
Young Law Group examined the 2014 list to determine how many of America’s largest businesses have been accused of committing fraud against the U.S. Government and settled those allegations. In its research, it attributed settlements by subsidiaries, acquisitions and predecessors to the parent or successor company. It does not include companies under investigation or with pending litigation.
About Young Law Group, P.C.
Young Law Group represents whistleblowers reporting health care fraud to the U.S. Government via qui tam lawsuits permitted by the False Claims Act. Young Law Group also represents individuals reporting securities fraud to the SEC/CFTC programs and tax evasion to the IRS.
Eric L. Young, Esq., Managing Partner of Young Law Group, represented the first whistleblower awarded compensation by the IRS under the mandatory reward program created following the Tax Relief and Health Care Act of 2006. Young has also served as an expert witness in areas of U.S. whistleblower law and represented clients in some of the largest qui tam recoveries, including United States ex. rel. Lucia Paccione v. Cephalon Inc., E.D.P.A., 03-CV-6268.
Learn more about Eric Young, Esq., and Young Law Group at http://young-lawgroup.com
For a free, confidential case evaluation and discussion about whistleblower laws and rights, please call Eric Young, Esq., at 1-800-590-4116.
Attorney Advertising: Young Law Group, P.C., is a private law office located at 123 S. Broad St., Ste 1920, Philadelphia, PA 19109 with attorneys licensed to practice in Pennsylvania. The firm will associate with local counsel in other jurisdictions when necessary. Young Law Group may not be able to represent residents of all states.
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