The Clinton Herald, Clinton, Iowa

Breaking News

October 18, 2013

BREAKING NEWS: Jury sides with Walker

DAVENPORT — The city of Clinton has lost its legal malpractice suit against the attorney who represented it in a 2009 Medicare fraud case.

On Friday afternoon, the jury returned a verdict declaring Michael Walker and his firm Hopkins and Huebner were not negligent and awarding the city nothing.

Walker and his firm were retained to represent the city in 2009 after Schultheis filed a complaint under the federal False Claims Act that the city was knowingly submitted false claims to Medicare and Medicaid in order to receive higher reimbursement rates.

The case was settled in 2010 for $4.5 million with no interest to be paid to Schultheis and the U.S. Department of Justice in annual installments of $450,000 over the course of 10 years. Schultheis and his attorneys receive 30 percent of the settlement.

The city filed suit against Walker and his law firm Hopkins and Huebner in March 2012, alleging Walker's negligence caused the city to rush into a settlement.

Check back later to for more on this story.

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