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Legal News: $6M DOJ settlement | FTC drops PBM lawsuit | Fake nurse sentenced | $41M wrongful termination | Vaccine lawsuit

News You Need to Know Today
Legal News: $6M DOJ settlement | FTC drops PBM lawsuit | Fake nurse sentenced | $41M wrongful termination | Vaccine lawsuit
Thursday, February 12, 2026
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Editor's Choice: Legal News

Five practices agree to $6M settlement with DOJ as investigation into Medicare fraud scheme continues

The U.S. Department of Justice said the defendants, five ophthalmology clinics in Florida, would pay kickbacks to a testing company that performed unnecessary transcranial Doppler ultrasounds. Prosecutors said an investigation into incidents of Medicare and Medicaid fraud stemming from the conspiracy is ongoing.

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Five practices agree to $6M settlement with DOJ as investigation into Medicare fraud scheme continues

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The U.S. Department of Justice said the defendants, five ophthalmology clinics in Florida, would pay kickbacks to a testing company that performed unnecessary transcranial Doppler ultrasounds. Prosecutors said an investigation into incidents of Medicare and Medicaid fraud stemming from the conspiracy is ongoing.
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Nonprofit health system settles fraud lawsuit over unsafe spinal surgeries for $3.7M

The U.S. Department of Justice said MultiCare admitted in court documents to ignoring warnings from a whistleblower and staff who said a neurosurgeon was performing spinal surgeries on patients without medical need and billing the procedures to Medicare.

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Nonprofit health system settles fraud lawsuit over unsafe spinal surgeries for $3.7M

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The U.S. Department of Justice said MultiCare admitted in court documents to ignoring warnings from a whistleblower and staff who said a neurosurgeon was performing spinal surgeries on patients without medical need and billing the procedures to Medicare.
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FTC settles lawsuit against Express Scripts in deal that includes TrumpRx support

The Federal Trade Commission was suing the pharmacy benefit manager over allegations it was deliberately inflating the price of insulin. Per the agreement, Express Scripts has agreed to end business practices that involved taking manufacturer rebates on wholesale drug costs without passing them on to patients.

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TrumpRx.gov Screenshot
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FTC settles lawsuit against Express Scripts in deal that includes TrumpRx support

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TrumpRx.gov Screenshot
The Federal Trade Commission was suing the pharmacy benefit manager over allegations it was deliberately inflating the price of insulin. Per the agreement, Express Scripts has agreed to end business practices that involved taking manufacturer rebates on wholesale drug costs without passing them on to patients.
READ MORE >

After third conviction, ‘fake nurse' finally gets 75 months in prison

The U.S. Department of Justice said Leticia Gallarzo, 51, most recently pleaded guilty to aggravated identity theft in Oct. 2023, but she skipped town and was able to get employment as a nurse and physician assistant in Illinois and California before being caught.

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After third conviction, ‘fake nurse' finally gets 75 months in prison

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handcuffs arrested arrest jail
The U.S. Department of Justice said Leticia Gallarzo, 51, most recently pleaded guilty to aggravated identity theft in Oct. 2023, but she skipped town and was able to get employment as a nurse and physician assistant in Illinois and California before being caught.
READ MORE >

Nurse awarded $41M in wrongful termination lawsuit against Kaiser Permanente

The judgment includes $30 million in punitive damages. The lawsuit was brought by Maria Gatchalian, a NICU nurse who said she was fired for reporting patient safety concerns to management. The health system said it intends to appeal the court's decision. 

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Nurse awarded $41M in wrongful termination lawsuit against Kaiser Permanente

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The judgment includes $30 million in punitive damages. The lawsuit was brought by Maria Gatchalian, a NICU nurse who said she was fired for reporting patient safety concerns to management. The health system said it intends to appeal the court's decision. 
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Lawsuits filed over allegations of dirty surgical tools, patient infections and defamation

A surgeon and a medical device representative accuse Portneuf Medical Center of failing to address an ongoing problem with contaminated surgical tools that left patients with serious infections.

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Lawsuits filed over allegations of dirty surgical tools, patient infections and defamation

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artificial intelligence healthcare industry
A surgeon and a medical device representative accuse Portneuf Medical Center of failing to address an ongoing problem with contaminated surgical tools that left patients with serious infections.
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High-level briefing: Sex change-backer wins $2M verdict | Must-knows for healthcare CEOs | Life expectancy up | Vociferous nurses revisited

A malpractice lawsuit filed by a gender detransitioner ended Jan. 30 with a victory for the aggrieved former patient. The decision may set a generalizable precedent since this was the first such suit to reach a courtroom—and since 30 or so others are en route. 

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High-level briefing: Sex change-backer wins $2M verdict | Must-knows for healthcare CEOs | Life expectancy up | Vociferous nurses revisited

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Courtroom
A malpractice lawsuit filed by a gender detransitioner ended Jan. 30 with a victory for the aggrieved former patient. The decision may set a generalizable precedent since this was the first such suit to reach a courtroom—and since 30 or so others are en route. 
READ MORE >

Legal eagles forecast 3 healthcare AI trends to eyeball in 2026 and beyond

Heated tension between state and federal AI regulators is coming, predict two attorneys subspecialized in AI startup success, data privacy and cybersecurity.

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Legal eagles forecast 3 healthcare AI trends to eyeball in 2026 and beyond

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lawyer attorney
Heated tension between state and federal AI regulators is coming, predict two attorneys subspecialized in AI startup success, data privacy and cybersecurity.
READ MORE >

‘No Kings’ in healthcare: leaders serve patients by following the clinical problem

California’s decision to restrict the use of the title “doctor” in clinical settings underscores a growing disconnect between healthcare policy and the realities of modern care delivery. In an op-ed, health policy professor and former Virginia legislator, Dawn M. Adams, DNP, and Marissa J. Levine, MD, a public health physician and former Virginia health commissioner, argue that rigid physician-centric hierarchies no longer reflect how patients actually receive care.

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‘No Kings’ in healthcare: leaders serve patients by following the clinical problem

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backgrounder_making-sense-of-the-us-health-care-system.jpg
California’s decision to restrict the use of the title “doctor” in clinical settings underscores a growing disconnect between healthcare policy and the realities of modern care delivery. In an op-ed, health policy professor and former Virginia legislator, Dawn M. Adams, DNP, and Marissa J. Levine, MD, a public health physician and former Virginia health commissioner, argue that rigid physician-centric hierarchies no longer reflect how patients actually receive care.
READ MORE >

Kennedy vax suit revised & sharpened | Hospital discharges examined | Nursing units awarded | And more high-level briefs

The American Academy of Pediatrics and co-plaintiffs are tightening the screws in their lawsuit against HHS Secretary Robert F. Kennedy Jr. and other healthcare leaders in the Trump administration.   

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Kennedy vax suit revised & sharpened | Hospital discharges examined | Nursing units awarded | And more high-level briefs

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Bobby Kennedy Jr
The American Academy of Pediatrics and co-plaintiffs are tightening the screws in their lawsuit against HHS Secretary Robert F. Kennedy Jr. and other healthcare leaders in the Trump administration.   
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