a5454983.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
___________
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date
of
Report (Date of earliest event reported): July 20,
2007
___________
MAXIMUS, INC.
(Exact
name of registrant as specified in its charter)
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Virginia
(State
or other jurisdiction
of
incorporation)
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1-12997
(Commission
File
Number)
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54-1000588
(I.R.S.
Employer
Identification
No.)
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11419
Sunset Hills Road,
Reston,
Virginia
(Address
of principal executive offices)
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20190-5207
(Zip
Code)
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Registrant’s
telephone number, including area
code: (703) 251-8500
Not
Applicable
(Former
name or former address, if changed since last report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
| Item
1.01. |
Entry
into a Material Definitive
Agreement. |
On
July
23, 2007, Maximus, Inc. (the “Company”) issued a press release, a copy of
which is attached hereto as Exhibit 99.1 and incorporated herein by reference,
announcing that it had entered into an agreement with the Federal government
to
settle the investigation of the company’s Medicaid claiming work for the
District of Columbia. As part of the settlement, the Company has
entered into: (i) a Settlement Agreement with the U.S.
Department of Justice (“DOJ”) on behalf of the Office of Inspector General of
the Department of Health and Human Services (“HHS”) (the “DOJ Settlement
Agreement”); (ii) a Corporate Integrity Agreement with HHS
(the “Integrity Agreement”); and (iii) a Deferred Prosecution
Agreement with the United States Attorney’s Office for the District of Columbia
(“USAO”) (the “Deferred Prosecution Agreement”).
Pursuant
to the terms of the DOJ Settlement Agreement the Company will make a cash
payment (the “Settlement Payment”) to the United States Government of $30.5
million for Medicaid claims prepared on behalf of the District of Columbia
that
were based on insufficient documentation (the “Covered
Conduct”). The Company will also pay $460 thousand to settle
employment and attorneys fees claims of a former employee who filed a False
Claims Act lawsuit relating to this matter. In return for the
Settlement Payment and subject to the fulfillment of its obligations under
the
DOJ Settlement Agreement, the United States agrees to release the Company
(including any related parent companies, subsidiaries, officers, directors,
employees and affiliates) from any civil or administrative monetary claims
relating to the Covered Conduct under the False Claims Act, the Civil Monetary
Penalties Law, the Program Fraud Civil Remedies Act or the common law theories
of payment by mistake, unjust enrichment, and fraud, and any causes of action
for which the civil division of the DOJ has present authority to
assert. Additionally, subject to satisfaction of its obligations in
the Integrity Agreement and the DOJ Settlement Agreement, HHS agrees to release
and refrain from instituting, directing or maintaining any administrative
action
seeking exclusion from Medicare, Medicaid or other Federal health care programs
as it relates to the Covered Conduct.
As
part of
the DOJ Settlement Agreement, the Company agreed to enter into the Integrity
Agreement, which will promote compliance with the statutes, regulations and
written directives of Medicare, Medicaid and all other Federal health care
programs. Under the Integrity Agreement, the Company is required to
revise and enhance its existing compliance program, including the appointment
of
a compliance officer and compliance committee, the development and/or revision
of written standards including the Company’s code of conduct and policies and
procedures, the provision of relevant training and education to its employees
and the creation of a disclosure program. The Company is required to
engage the HHS Office of Audit Services to review its implementation of the
Company’s obligations under the Integrity Agreement and will be subject to
certain notification and reporting requirements. The Integrity
Agreement requires the Company to assume certain compliance obligations for
a
period of five years.
Pursuant
to the terms and conditions of the Deferred Prosecution Agreement, the USAO
agrees to defer the filing of criminal charges against the Company for 24
months
with respect to the Covered Conduct, provided that the Company accepts
responsibility for its conduct, cooperates with the USAO, makes the Settlement
Payment, complies with Federal criminal laws and otherwise complies with
the
Deferred Prosecution Agreement. If the Company satisfies its
obligations under the Deferred Prosecution Agreement for the 24-month deferral
period, the USAO agrees not to file criminal charges against the Company
with
respect to the Covered Conduct.
The
forgoing description of the DOJ Settlement Agreement, the Integrity Agreement,
and the Deferred Prosecution Agreement are qualified in their entirety by
the
text of such agreements which are attached hereto as Exhibit 10.1, Exhibit
10.2,
and Exhibit 10.3, respectively, and are incorporated herein by
reference.
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Financial
Statements and Exhibits.
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(d) Exhibits.
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Exhibit
No.
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Description
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10.1
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Settlement
Agreement dated July 20, 2007 among the United States of America,
acting
through the United States Department of Justice and on behalf of
the
Office of Inspector General of the Department of Health and Human
Services, relator Benjamin Turner, and Maximus, Inc.
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10.2
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Corporate
Integrity Agreement dated July 20, 2007 between Maximus, Inc. on
behalf of
the Maximus Consulting Segment and the Office of Inspector General
of the
United States Department of Health and Human Services.
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10.3
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Deferred
Prosecution Agreement dated July 23, 2007 between Maximus, Inc.
and the
United States Attorney’s Office for the District of Columbia.
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99.1
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Press
release dated July 23, 2007
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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MAXIMUS,
Inc.
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Date:
July 24, 2007
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By:
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/s/
David R. Francis
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David
R. Francis
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General
Counsel and Secretary
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