NEW ORLEANS – A federal judge has granted legal fees only for attorneys named in a settlement agreement in a Medicare kickback case.
U.S. District Judge Lance M. Africk granted the motions made by two attorneys on April 3. But he adjusted the rates downward to match prevailing attorney billing rates within the district.
Treci McNeil and Philip Bergeron’s motion was granted in part and denied in part. Motions for Lindsey Lawson, Sheldon Green, and Kevin Church were denied as they were not part of the global settlement agreement in which awards were made..
U.S. District Court Judge Lance M. Africk
For McNeil and Bergeron, Judge Africk used the lodestar method to determine attorneys’ fees. This calculation multiplies counsel's hours worked by a fair hourly rate.
McNeil asked for $78,472 in attorneys’ fees, and $3,194.93 in costs and expenses from defendants Tarun Jolly, M.D and UTC Laboratories. Judge Africk's lodestar calculations adjusted that down to $48,558. The court also agreed with her request for costs.
Bergeron asked for $126,340 in attorneys’ fees and $1,856.69 in costs and expenses. Using lodestar, the court ruled that Bergeron was only owed about half of what was requested, $64,040 for attorneys’ fees. He was awarded $1,083.42 in court costs as he failed to explain some charges like “Messenger” “Excess Postage” and “Express Mail,” which equaled $773.27.
Judge Africk explained why only Bergeron and McNeil received an award based on U.S.C. section 3730(d)(1), which says a person is owed costs if they’re awarded funds through the lawsuit or settlement. Only Bergeron and McNeil met that criteria.
“The Relators Settlement Agreement between the government and the relators did not provide for such shares to Lawson, Green, Church, or Outerbridge,” wrote Judge Africk. He also said in his order each party said the contract was just and fair for all sides.
Lawson, Green and Church failed to explain why they believe they’re owed expenses in question. That led to the judge denying their motion.
McNeil, Lawson, Green, Church, Bergeron, and Kevin Outerbridge (relators) sued Jolly, Barry Griffith, Patrick Ridgeway and UTC for infringing on the Anti-Kickback Statute (AKS), 42 U.S.C. section 1320(a)-7b(b), and the Physician Self-Referral Law (“Stark Act”).
According to the lawsuit, “The relators claimed that the defendants offered and paid remuneration to physicians and other individuals to induce the ordering of medically unnecessary pharmacogenetic clinical laboratory tests.” They also allegedly sent Medicare fake claims to get reimbursed for the tests.
Both sides entered into the Relators Settlement Agreement where Bergeron was awarded $8.2 million from UTC, Ridgeway, Griffith, and the government. McNeil got $110,000 of a $500,000 settlement from Jolly. Lawson, Green, Church, and didn’t receive anything.
U.S. District Court Louisiana Eastern District case numbers 14-2247 c/w 15-877, 15-297, 15-1445, 16-15440