Legal News

Stories about physicians and other healthcare professionals involved in lawsuits—as either a plaintiff or a defendant—or accused of breaking the law. Various legal updates or unusual stories in the news may land here.

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Two drug suppliers plead guilty in $50M ‘straw purchase’ resale scheme

The two men, Frank Incognito, 46, and Stephen Corba, 50, conspired with doctors in a scheme involving the fraudulent purchase of critical cancer and macular degeneration drugs, which were then diverted and resold for profit. The U.S. Department of Justice said the unlawful pact lasted seven years.

Nonprofit health system, Nuance Communications agree to $5M settlement after data theft

A fired employee of Nuance, a Microsoft subsidiary, is responsible for stealing records on 1.3 million patients from Geisinger Health in Pennsylvania. He has pleaded guilty as part of a deal with prosecutors.

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Radiology practice’s severance agreement is unlawful, National Labor Relations Board rules

Leena Mammen, MD, first brought the complaint against Fayetteville-based Valley Radiology in 2023. 

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Cardiologist surrenders medical license after faking penile cancer diagnosis

An interventional cardiologist has lost his ability to practice in multiple states after faking a cancer diagnosis, lying about his training and allegedly asking a colleague to falsify documents. 

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Cyberattack on healthcare RCM vendor may have impacted 140K patients

The details stem from a report from SecurityWeek, but they’re a little fuzzy. After a 12 GB data trove was posted to the dark web, Vikor Scientific reported to HHS that there were nearly 140,000 victims. However, the source of the breach may be a third-party revenue cycle company, Catalyst RCM. 

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State malpractice damage cap shields radiologist from $5M jury award

Thomas McNalley previously sued Toledo Radiological Associates and Vincent Keiser, MD, alleging the physician failed to diagnose a blood clot in his abdomen. 

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Vascular imaging at heart of $71M fraud scheme—DOJ announces prison sentences

The years-long scheme involved sending kickbacks to physicians who ordered unnecessary transcranial doppler exams. Two conspirators have now been sentenced to prison and ordered to pay substantial fines.

CMS defers $260M in Medicaid funds as part of ‘major crackdown on healthcare fraud’

The money was meant for Minnesota, where criminals were indicted for abusing the Medicaid system to run bogus daycare centers. The Centers for Medicare & Medicaid Services did not specify how the state can rectify the situation to the Trump administration’s satisfaction.