Addus Asks Judge to Dismiss Whistleblower Lawsuit

After being slammed with accusations of fraud under the False Claims Act in a whistleblower case, Addus Homecare (Nasaq: ADUS) has filed another motion to dismiss the case.

In early February, a judge ruled that the case, which alleges that Addus engaged in several fraud schemes involving Medicare home health patients, could move forward after rejecting, in part, Addus’ attempt to dismiss the case. The complainant filed an amended complaint in March.

Addus claims that the amended complaint doesn’t make any allegations of facts, like an illegal referral arrangement, and improperly cites an Illinois False Claims Act claim without following statutory filing requirements, according to court documents.


The whistleblower claims that Addus engaged in referral arrangements in violation of the Anti-Kickback Statute, including with a doctor and other health care facilities. The whistleblower further alleges that Addus falsely certified patients as eligible for Medicare-reimbursement services and conspired with co-defendant Cigna Corporation to falsely certify patients as eligible for these services.

Cigna’s motion to dismiss was granted by the judge in February, as was part of Addus’ initial motion to dismiss.

Addus claimed in its most recent motion to dismiss, filed April 7, that the amended complaint still does not allege fraud “with particularity.” Addus went on to call the plaintiff a “bounty hunter” in the case, citing a lack of factual allegations in the complaints and documents submitted by the plaintiffs as a “red herring.”


Addus is also pushing for Illinois False Claims claim to be dismissed on the grounds that the second amended complaint did not comply with the statute’s filing-under-seal agreement.

Written by Amy Baxter

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