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Miami Based Nursing Home Chain Faces Pair Of Class Action Lawsuits

A Miami Beach businessman and the nursing home chain his family helped to launch are facing a pair of civil lawsuits from whistleblowers accusing him of lining his pockets with the company’s money. One of the suit’s plaintiffs is the nursing home chain’s ex-CEO and the other is the chain’s former chief of nursing, who also happens to be the former plaintiff’s wife.

The husband’s complaint alleges the defendant siphoned of $100 million from the company. His lawyer claims the diversion of cash forced the closure of not-for-profit centers, delayed pay increases for employees, and caused layoffs for others.

Similarly, the wife’s Miami whistleblower lawsuit accuses the defendant of illegally taking money from the company while simultaneously overseeing a substantial reduction in staff and services. Both plaintiffs claim they attempted to thwart the defendant’s alleged misconduct but were fired after refusing what they claim was a very lucrative employment offer to remain silent about the alleged impropriety.

Each plaintiff’s suit seeks compensation for intentional infliction of emotional distress and lost wages under the provisions of Florida’s Private Sector Whistleblower’s Act. The pair of lawsuits is just the latest in a series of investigations into Plaza Health Network. In June 2015, Plaza Health Network reached a $17 million settlement with the federal government over allegations the company violated The False Claims Act when it allegedly gave kickbacks to doctors for referrals to the healthcare network.

Miami whistleblower lawsuits

There are a number of state and federal laws that make it a crime to defraud state programs for personal gain. To help combat the spread of fraud, waste, and abuse of governmental programs, private citizens with intimate knowledge of the schemes are encouraged to bring civil lawsuits on behalf of the state or federal entity to recover ill begotten money.

These whistleblower initiatives include:

  • Florida’s Private Sector Whistleblower’s Act – Prohibits employers from taking an adverse employment action against an employee because the employee has disclosed, threatened to disclose, objected to, or refused to participate in a violation of law. Employees retaliated against are entitled to such restitution as reinstatement, back pay, reasonable lawyer’s fees, and other compensatory damages.
  • False Claims Act – Federal statute that makes it illegal to knowingly defraud any federally backed program. Employees who successfully prosecute claims brought on behalf of the government may be entitled to between 15 percent to 30 percent of the money recovered, depending on the circumstances of the case.

Miami whistleblower lawyers

If you were a state employee let go for refusing to participate in a violation of state law, you may be entitled to compensation for your improper termination. Other whistleblowers who step forward with information about fraud perpetrated against federal programs may also be entitled to compensation.

Contact the Miami whistleblower lawyers of The Pendas Law Firm for a confidential consultation about your case. Our lawyers serve clients throughout Orlando, Tampa, Fort Myers, Jacksonville, West Palm Beach, Fort Lauderdale & Miami.

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