Medical Waste Disposal Company Pays $677,000 for Overcharging Massachusetts Government Entities
Illinois-based Company Pays Total of $26.75 Million in Federal-State Settlement
BOSTON – An Illinois-based medical waste disposal company paid more than $677,000 to Massachusetts as part of a federal-state settlement of allegations that the company overcharged government entities millions of dollars for its services.
Stericycle, Inc. has paid a $26.75 million settlement to 12 states, the District of Columbia and the federal government, resolving allegations that the company violated the U.S. and state False Claims Acts.
“Companies that defraud taxpayers by overcharging for their services must be held responsible,” AG Healey said. “We are pleased to have worked with our federal and state partners to recover these critical funds.”
Stericycle has provided medical waste disposal services to school districts, health departments, colleges, police departments, nursing homes and municipalities. The lawsuit alleged that Stericycle violated state and federal false claims laws by overcharging government customers by automatically increasing its charges up to 18 percent annually in violation of prices set by contracts.
The settlement resulted from a lawsuit by a whistleblower, or “relator” under the False Claims Act, who was a former employee of the company. Under the terms of the settlement, Massachusetts has recovered more than $677,000 to compensate for damages to local government entities that used the company’s services.
The other states that joined the settlement were California, Delaware, Florida, Illinois, Indiana, Nevada, New Jersey, North Carolina, Rhode Island, Tennessee, Virginia, along with the District of Columbia, and the federal government.
This matter was handled for Massachusetts by Assistant Attorney General Eric Gold of AG Healey’s Health Care Division, along with Assistant Attorney General Gillian Feiner, Chief of the False Claims Division.