CPM Whistleblower Suit Against Southern California Hospitals May Proceed

The defendants argued that the complaint lacked sufficiently detailed allegations against them. The court rejected all of the defendants’ arguments, ruling that the whistleblowers’ complaint alleges with “particularity each [defendant’s] alleged conspiratorial acts in furtherance of a fraudulent scheme.” Hearing Transcript at 54:22-24. Judge Berle further explained that the allegations in the complaint “detail the alleged scheme of marketers and steerers referring patients to doctors and hospitals, use of counterfeit hardware and hyped up prices . . .” Transcript at 52:10-12.

Michael Drobot, the primary defendant in CPM’s case, was indicted on federal charges, on February 21, 2014, as were former California State Senator Ronald Calderon and his brother, former California Assemblymember Tom Calderon. Drobot has been indicted for the conduct described in CPM’s whistleblower complaint. In Thursday’s ruling, the court explained that the “inference that claims actually were submitted further is bolstered by the judicially noticed plea agreement of the defendant Michael Drobot implicating many of the allegations here.” Transcript at 52:25-28.

A copy of the hearing transcript can be found here. The case is being handled by CPM attorney Justin T. Berger. 


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