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January 5, 2004
 The United States
District Court
for the Eastern District of
Pennsylvania:
United States of America
v. Ernst &
Young, LLP
This action seeks
damages and penalties under the False Claims Act, 31 U.S.C.
3729-33, as amended, and the common
law theories of payment by mistake and unjust enrichment
as a result of causing the submission of over two hundred thousand
claims for payment for
outpatient clinical laboratory tests billed to the Medicare
Program ("Medicare") for the
period 1991 through and including 1997. This is an action by the
United States to recover over
nine hundred thousand dollars ($900,000) in laboratory payments
improperly claimed and received
by nine hospital providers (who were clients of Ernst & Young)
(the "nine hospitals") from
the Medicare program to which they were not entitled.
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