MJH Healthcare Holdings, LLC, False Claims Act, New Jersey 2024

MJH Healthcare Holdings, LLC, Agrees to Pay $2 Million to Settle False Claims Act Allegations

A New Jersey-based healthcare company has agreed to pay $2,006,424 to settle allegations that it violated the False Claims Act by knowingly certifying its eligibility to use the periodicals postage rate offered by the United States Postal Service when it was ineligible for that rate.

According to a recent press release, MJH Healthcare Holdings, LLC, its subsidiary, MJH Life Sciences, LLC, and several affiliates of MJH Life Sciences, LLC (collectively MJH), were accused of calculating the required postage based on the periodicals postage rate for 40 mailings of MJH publications between October 2021 and June 2024.

The United States alleged that MJH included among the “requesters” addressees appearing on lists received from third-party sources that had not qualified the listed individuals to be requesters, as required, and also counted requests that had aged out, which are not eligible for the periodicals rate.

Had MJH excluded these categories from its calculations, as required, the percentage of requesters would have been less than 50 percent of recipients, and the company should not have certified that its requester figures were accurate and that it was eligible for the lower periodicals rate for these mailings.

“The United States relies on individuals and companies doing business with it to accurately report what they owe the government. When they do not, we will not hesitate to take appropriate steps to protect the public fisc,” said U.S. Attorney Alina Habba.

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by John Burke, a former employee of one of the MJH affiliates. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Mr. Burke will receive $341,092 under this resolution.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of New Jersey with assistance from the United States Postal Service’s Office of the Inspector General.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Mandatory Facts:

Defendant/respondent: MJH Healthcare Holdings, LLC

Criminal charges: Violating the False Claims Act

City and state: Cranbury, New Jersey

Exact date: October 2021 – June 2024 (time period of alleged misconduct)

Sentence or outcome: MJH Healthcare Holdings, LLC, agreed to pay $2,006,424 to settle allegations

Dollar amounts: $2,006,424 (amount paid to settle allegations), $341,092 (amount Mr. Burke will receive)

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