Modern Nuclear Inc. $8.33 Million False Claims Act Settlement, How a Mobile PET Scan Company Paid Cardiologists to Send It Patients

The Modern Nuclear Inc. settlement is a $8,334,350.71 False Claims Act agreement where a California mobile PET scan company agreed to pay the U.S. government after allegedly paying illegal kickbacks to referring cardiologists — fees disguised as supervision payments — to steer Medicare and TRICARE patients toward its services between September 1, 2016 and January 14, 2025. The U.S. Department of Justice announced the settlement on May 1, 2026.

Quick Facts

Field	Detail
Settlement Amount	$8,334,350.71 plus additional future revenue amounts
Defendant	Modern Nuclear Inc. (MNI), La Habra, California
Case Name	United States ex rel. Lieberman v. Modern Nuclear, Inc., et al.
Case Number	8:23-cv-01646-DOC-KES
Court	U.S. District Court, Central District of California
Laws Allegedly Violated	False Claims Act; Anti-Kickback Statute (AKS)
Federal Programs Affected	Medicare; TRICARE
Alleged Conduct Period	September 1, 2016 – January 14, 2025
Whistleblowers (Relators)	Matt Lieberman and James Whitney
Whistleblower Share	16% of total recovery
Compliance Requirement	5-year Corporate Integrity Agreement with HHS-OIG
Settlement Announced	May 1, 2026
Last Updated	May 2, 2026

Current Status

• The DOJ announced the settlement on May 1, 2026. MNI has agreed to pay $8,334,350.71, plus additional amounts tied to future revenues — structured this way because the settlement is based on MNI’s current ability to pay.
• MNI has entered into a five-year Corporate Integrity Agreement with the HHS Office of Inspector General, requiring ongoing compliance monitoring, an independent compliance expert, and mandatory program reforms.
• The claims resolved by this settlement are allegations only. No court has made a finding of liability against MNI.

What Is the Modern Nuclear Inc. Lawsuit About? United States ex rel. Lieberman v. Modern Nuclear, Inc., et al., No. 8:23-cv-01646-DOC-KES

Modern Nuclear Inc. operates mobile positron emission tomography — PET scan — units that travel to cardiology practices and perform scans on patients those doctors refer. The problem, according to the U.S. government, was how MNI compensated the cardiologists who sent it those patients.

The United States alleged that between September 1, 2016 and January 14, 2025, MNI knowingly submitted false or fraudulent claims to federal health care programs arising from violations of the Anti-Kickback Statute. Specifically, MNI allegedly paid kickbacks to referring cardiologists in the form of above-fair market value fees, ostensibly for cardiologists to supervise PET scans for the patients they referred to MNI.

The Anti-Kickback Statute (AKS) — a federal law under 42 U.S.C. § 1320a-7b — makes it illegal to pay or receive anything of value to induce or reward patient referrals billed to a federal health program like Medicare or TRICARE. In plain terms: you cannot pay a doctor to send you patients and then bill the government for those patients. That is exactly what the government says MNI did.

The United States alleged these fees substantially exceeded fair market value for the cardiologists’ services because MNI paid the referring cardiologists for time they spent in their offices caring for other patients or while they were not on site at all, or for additional services beyond supervision that were never or rarely actually provided. MNI purported to rely on an attorney-opinion letter regarding fair market value that the United States alleged was premised on fundamental inaccuracies and that the consultant ultimately withdrew.

The case was filed by two whistleblowers — Matt Lieberman and James Whitney — under the False Claims Act’s qui tam provisions, which allow private individuals to sue on the government’s behalf and share in any recovery. The Central District of California handled the case, with investigative support from the HHS Office of Inspector General and the Defense Criminal Investigative Service.

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Are You Affected by the Modern Nuclear Inc. Settlement?

This is a government enforcement action — not a consumer class action. There is no claims portal and no process for individual patients to receive money from this settlement. The $8.33 million goes to the United States government to recover funds fraudulently billed to Medicare and TRICARE.

That said, if you or a family member received a mobile PET scan through Modern Nuclear Inc. between 2016 and 2025, here is what this settlement means for you:

You may have been affected if:

• Your cardiologist referred you to a mobile PET scan unit between September 2016 and January 2025 and that unit was operated by Modern Nuclear Inc.
• You were a Medicare or TRICARE beneficiary during that period
• You are concerned that your referral for a PET scan was driven by your doctor’s financial arrangement with MNI rather than your medical need

You are NOT receiving a direct payment from this settlement. However, if you believe you were referred for unnecessary medical testing as a result of an improper financial relationship between your doctor and a third-party provider, you have options. You can report suspected Medicare fraud to HHS at 1-800-HHS-TIPS (800-447-8477). You can also consult a healthcare fraud attorney — False Claims Act whistleblower cases sometimes begin with patients who witnessed something that didn’t seem right.

What Is MNI Required to Do Going Forward?

The settlement is not just about the money. MNI’s ongoing conduct is now under federal supervision for the next five years.

In connection with the settlement, MNI entered into a five-year Corporate Integrity Agreement with the HHS-OIG. The CIA requires, among other compliance provisions, that MNI implement measures designed to ensure that arrangements with referring physicians are compliant with the Anti-Kickback Statute. The CIA also requires that MNI implement a compliance program to identify and address the AKS risks associated with other financial arrangements and retain an Independent Compliance Expert to perform a review of the effectiveness of the compliance program.

In plain terms: MNI must overhaul how it structures payments to referring physicians, submit to independent auditing, and demonstrate that patient referrals are based on medical need — not financial incentives. Any future violation of these terms could result in exclusion from Medicare and Medicaid entirely.

Modern Nuclear Inc. Settlement Timeline

Milestone	Date
Alleged Kickback Scheme Begins	September 1, 2016
Alleged Kickback Scheme Ends	January 14, 2025
Qui Tam Complaint Filed by Whistleblowers	2023 (Case No. 8:23-cv-01646)
DOJ Investigation	2023 – 2026
Settlement Announced	May 1, 2026
5-Year Corporate Integrity Agreement Begins	May 1, 2026
Additional Revenue-Based Payments	TBD — ongoing based on MNI future revenues

Frequently Asked Questions

Is there a lawsuit against Modern Nuclear Inc.? 

Yes. Modern Nuclear Inc. agreed to pay $8,334,350.71, plus additional amounts based on future revenues, to resolve False Claims Act allegations that it paid referring cardiologists excessive fees to supervise PET scans in violation of the Anti-Kickback Statute. The DOJ announced the settlement on May 1, 2026.

Can I file my own lawsuit against Modern Nuclear Inc. as a patient?

 This settlement resolves the government’s claims under the False Claims Act. Individual patients do not receive a share of this settlement. If you believe you received unnecessary medical procedures due to an illegal referral arrangement, consult a healthcare fraud attorney about your options. A qui tam attorney can advise whether you may have grounds to file a separate whistleblower complaint.

What is the Anti-Kickback Statute? 

The Anti-Kickback Statute is a federal law that makes it illegal for healthcare providers to pay or receive anything of value — money, fees, gifts — in exchange for referrals of patients whose care will be billed to Medicare, Medicaid, or TRICARE. Violations can result in False Claims Act liability, civil penalties, and exclusion from federal healthcare programs.

Who were the whistleblowers in this case? 

The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by relators Matt Lieberman and James Whitney. The relators will receive 16% of the total recovery in this matter.

What is a Corporate Integrity Agreement? 

A Corporate Integrity Agreement is a formal compliance contract between a healthcare company and the HHS Office of Inspector General. It requires the company to implement specific reforms, submit to independent monitoring, and demonstrate that its practices comply with federal healthcare law. Violating a CIA can result in exclusion from Medicare and Medicaid.

How do I report Medicare or healthcare fraud?

 Contact the HHS fraud tip line at 1-800-HHS-TIPS (1-800-447-8477), or submit a report online at oig.hhs.gov. Whistleblowers who report fraud that leads to a government recovery can receive a share of the proceeds under the False Claims Act.

Did Modern Nuclear Inc. admit wrongdoing? 

No. The claims resolved by this settlement are allegations only. The DOJ press release states that no court has made a determination of liability against MNI.

Sources & References

• U.S. Department of Justice, Office of Public Affairs — Mobile PET Scan Provider to Pay $8.33 Million to Resolve Allegations of False Claims Act Violations Based on Unlawful Kickbacks to Medical Practices, May 1, 2026: justice.gov
• United States ex rel. Lieberman v. Modern Nuclear, Inc., et al., Case No. 8:23-cv-01646-DOC-KES, U.S. District Court, Central District of California
• HHS Office of Inspector General fraud tip line: 1-800-447-8477
• HHS-OIG Corporate Integrity Agreements: oig.hhs.gov

Disclaimer: This article is for informational purposes only and does not constitute legal advice. The claims resolved by this settlement are allegations only, and no court has made a determination of liability against Modern Nuclear Inc. For advice about your specific situation, consult a qualified attorney.

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against the official DOJ press release and court records. Last Updated: May 2, 2026.