Please ensure Javascript is enabled for purposes of website accessibility

Whistleblowers amend complaint against Sentara

SUMMARY:

    • Whistleblowers filed an amended complaint accusing of improperly inflating health rates in Charlottesville region during 2018-19
    • New high-profile firms joined plaintiffs’ team
    • Sentara denies wrongdoing, citing ‘s withdrawal as validation

A long-running whistleblower case against Sentara Health has entered a new phase, with the plaintiffs filing an amended complaint and recruiting additional lawyers to continue pursuing their allegations that the health system improperly inflated health insurance premiums in 2018 and 2019.

Last week’s court filing came about three months after the U.S. Department of Justice (DOJ) withdrew from intervening in the case in June, a move that a legal expert has said may make the whistleblowers’ task more difficult.

The whistleblower plaintiffs — Charlottesville residents Sara Stovall, Ian Dixon and Karl Quist — submitted an amended complaint on Sept. 23, to the U.S. District Court for the Western District of Virginia.

While the plaintiffs are retaining their previous attorney, Marty Bienstock, they’ve added Rick Mountcastle from Guttman Buschner and several attorneys from law firms Reese Marketos and Berger Montague to the roster.

Earlier this year, Reese Marketos and Berger Montague secured a $1.6 billion False Claims Act judgment against Janssen Products, a subsidiary of Johnson & Johnson, in a case involving allegations that Janssen engaged in unlawful marketing practices for HIV medications.

“Ian, Karl and I are absolutely thrilled that our False Claims Act case is in the expert hands of the most successful, reputable law firms in the country,” said Stovall. “We are as confident as ever that the facts are on our side, that what we allege is true, and that Sentara owes a large amount of money back to the taxpayers.”

Dixon, Quist and Stovall’s complaint alleges that Sentara’s Optima Health insurance division (now part of Sentara Health Plans) significantly raised rates for 2018 and 2019 health insurance coverage in the Charlottesville region under the federal . At the time, Sentara was the only insurer offering health coverage on the exchange in the region.

Sentara, in court filings and public statements, has consistently denied all the plaintiffs’ allegations and has said the company was being a good corporate citizen that stepped up during a politically volatile time to prevent vulnerable Virginians from losing health insurance coverage.

“At a time when Virginians were at risk of losing access to ACA coverage, Sentara worked with government leaders to meet the needs of Virginians, quickly expanding coverage and supporting the health of our communities,” Sentara spokesperson Dale Gauding said in a statement. “The Department of Justice thoroughly reviewed the case and ultimately declined to intervene, reaffirming what we’ve said from the beginning: The facts and the evidence are on our side. It’s unfortunate that the [plaintiffs] in this case have misconstrued the facts in an effort to win financial gains.”

Sentara, he added, “will continue to vigorously defend against these meritless allegations while remaining fully focused on our not-for-profit mission: improving health and access to care across the commonwealth.”

The plaintiffs’ initial complaint, filed in 2020, sought more than $200 million in damages and civil penalties on behalf of the U.S. government from Sentara, Optima and Seattle-based independent actuarial and consulting firm Milliman, which certified Optima’s insurance rates.

However, the amended complaint no longer specifies $200 million in damages but alleges that the defendants engaged in practices that “caused hundreds of millions of dollars in damages to the United States” and asks the court for treble damages and applicable civil penalties in the maximum amount allowed by law.

“We’re not a big firm, but we’ve taken and had some great success on some [False Claims Act] cases,” said Adam Sanderson, one of the plaintiffs’ new attorneys from Reese Marketos.

Regarding the Sentara case, Sanderson said, “We feel great about the evidence that we have available to us, and we feel great about the evidence we’re going to be able to discover during the course of this case.”

attorney John P. Fishwick, a former U.S. attorney for the Western District of Virginia and oft-quoted legal commentator, said, “The plaintiffs have a strengthened legal team and I would expect them to move forward with alacrity. It does not help if DOJ withdraws from a case, but the plaintiffs have sent a signal they are committed to the case.”

While it’s too soon to predict what will happen, Fishwick said, “you can expect many legal motions by each side. A trial is a long way off.”

CSX replaces CEO amid investor pressure, names Steve Angel

Summary

  • replaces CEO after investor push for change
  • cited poor performance under Hinrichs’
  • , former Linde and Praxair CEO, takes helm at CSX
  • Major projects disrupting service recently completed, boosting outlook

 

CSX railroad announced Monday that it had replaced its CEO less than two months after an urged it to either find another railroad to merge with to better compete with the proposed transcontinental  railroad or fire outgoing CEO Joe Hinrichs.

The outgoing CEO, who came to the railroad in 2022 after a long career with Ford, focused on repairing CSX’s relationship with its workers and labor unions and unifying the team after a bitter contract fight. But Ancora Holdings, which helped spur major changes at , said CSX’s operating performance deteriorated significantly under Hinrichs’ leadership. Hinrichs resigned to clear the way for Steve Angel to become CEO effective Sunday.

Angel, 70, also comes from outside the rail industry although earlier in his career he oversaw GE’s locomotive building unit, so he does have that experience. CSX said he has 45 years experience leading large public companies, including most recently as CEO of Linde and Praxair.

“We are excited to welcome Steve as our new CEO. He is a visionary in creating long-term value and an expert in guiding companies through significant transformation,” the railroad’s board Chairman John Zillmer said.

CSX has been under pressure from Ancora and other investors since Union Pacific announced its $85 billion deal to acquire Norfolk Southern, which is CSX’s rival in the eastern United States. But both BNSF and CPKC railroads said they aren’t interested in a merger right now.

Ancora said CSX has delivered disappointing shareholder returns and poor financial performance during Hinrichs’ tenure. But over the past year, CSX was working on two major projects — repairs from Hurricane Helene and a major tunnel renovation in Baltimore — that disrupted the railroad. Both those projects were just completed this month, so CSX’s performance was expected to improve in the fourth quarter.

Angel promised to make improvements at the Jacksonville, Florida-based company, which is one of the six largest railroads in North America.

“My top priorities will be to ensure the safety of the railroad and our employees, deliver reliable service to our customers, and increase value for our shareholders,” Angel said in a statement.

Trump threatens 100% tariff on foreign-made films

Summary

  • Trump vows 100% tariff on overseas-made films
  • studios face uncertainty on enforcement
  • posted $15.3B trade surplus in 2023
  • Tariff could disrupt global production and raise costs for consumers

(Reuters) -President Donald Trump said on Monday he would impose a 100% tariff on all films produced overseas that are then sent into the U.S., repeating a threat made in May that would upend Hollywood’s global business model.

The step signals Trump’s willingness to extend protectionist trade policies into cultural industries, raising uncertainty for studios that depend heavily on cross-border co-productions and international box-office revenue.

“Our movie making business has been stolen from the United States of America, by other Countries, just like stealing candy from a baby,” Trump said in a post on his Truth Social.

However, it was not immediately clear what authority Trump would use to impose a 100% tariff on foreign-made films.

The White House did not immediately respond to a Reuters request for comment on how the would be implemented.

Top U.S. studios Warner Bros Discovery, Paramount Skydance and Netflix also did not immediately respond to requests for comment. Comcast declined to comment.

“There is too much uncertainty, and this latest move raises more questions than answers,” said PP Foresight analyst Paolo Pescatore.

“For now, as things stand, costs are likely to increase, and this will inevitably be passed on to consumers,” he said.

The president had first floated the idea of a movie tariff in May but offered few details, leaving entertainment executives unsure whether it would apply to specific countries or all .

After the announcement in May, a coalition of American film unions and guilds sent a letter to Trump, urging him to support tax incentives for domestic film production in a reconciliation package being drafted in Congress, aiming to help return more movie and television projects to the U.S.

The U.S. film industry recorded a $15.3 billion trade surplus in 2023, backed by $22.6 billion in exports to international markets, according to the .

FROM AUSTRALIA TO CANADA

Studio executives told Reuters earlier this year that they were “flummoxed” by how a movie tariff might be enforced, given that modern films often use production, financing, post-production and visual effects spread across multiple countries.

Hollywood has increasingly relied on overseas production hubs such as Canada, the UK and Australia, where tax incentives have attracted big-budget shoots for films ranging from superhero blockbusters to streaming dramas.

At the same time, co-productions with foreign studios have become more common, particularly in Asia and Europe, where local partners provide financing, access to markets, and distribution networks.

Industry executives also warn that a broad tariff could affect the thousands of U.S. workers employed on overseas shoots, from visual effects artists to production crews, whose work is often coordinated across multiple countries.

(Reporting by Akash Sriram and Harshita Mary Varghese in Bengaluru; Editing by Sriraj Kalluvila and Shilpi Majumdar)

Trump administration says it will expand coal leasing, fund coal plant upgrades

Summary

  • 13.1M acres of federal land to open for
  • $625M to expand coal-fired power generation
  • Administration expects coal plants to delay closures
  • Analysts doubt long-term coal revival as gas, renewables grow

WASHINGTON (Reuters) -The will expand coal mine leasing on federal lands and provide hundreds of millions of dollars to support more coal-fired power generation, officials said on Monday.

The plan is part of a broader effort by the administration to reverse the decline of coal use in the U.S., a fossil fuel that has been hard hit by environmental regulation and competition from natural gas in recent years.

At a press conference in Washington, Interior Secretary Doug Burgum said his department would open 13.1 million acres (5.3 million hectares) of federal land for coal leasing. The Department of Energy, meanwhile, said it would provide $625 million in funds to expand power generation fueled by coal.

Coal-burning plants generated about 15% of U.S. electricity in 2024, a fall from 50% in 2000, according to the Energy Information Administration, as fracking and other drilling methods have hiked natural gas output. Solar and wind power growth has also cut coal use.

The coal workforce has declined to about 40,000 from 70,000 a decade ago.

President Donald Trump had signed executive orders in April to increase coal output, in one of his many actions that run counter to global efforts to cut carbon emissions.

Burgum said in a statement that the effort to support coal will strengthen the U.S. economy and create jobs.

Chris Wright, the U.S. energy secretary, told Reuters last week he expects most of the nation’s to delay retirement to help deliver electricity needed to fuel artificial intelligence.

Last month, Wright extended his emergency order to keep a Michigan coal plant running, even though the plant’s operator had been planning to shut permanently for economic reasons.

Tom Pyle, president of the American Energy Alliance, predicted that 38 coal plants scheduled to close through 2028 would remain open, either on Trump orders or voluntarily.

Analysts, however, have been skeptical about a long-term U.S. boost in the use of coal as the economics have shifted in favor of less carbon-intensive fuel.

“Coal may see a temporary boost from regulatory relief, and some investors may profit in the short term,” Frank Holmes, CEO and chief investment officer of U.S. Global Investors, wrote after Trump’s orders. “But in the long run, I think the writing is on the wall.”

(Reporting by Timothy Gardner; Editing by Barbara Lewis, Marguerita Choy and Bill Berkrot)

Branch Group CEO plans 2026 retirement

This time last year, Bob Wills was promoted from chief financial officer to CEO of , an employee-owned firm headquartered in , following the retirement of Don Graul, who held the post for four years. However, in a press release distributed Thursday, the company announced Wills plans to step down sometime before the end of 2026.

A date for his retirement has not yet been set, according to Branch spokesperson Peg McGuire. Nor has a decision been made on whether Wills will serve on the company’s board following his retirement.

In Thursday’s announcement, Branch announced the promotion of Jason Hoyle to the newly created position of chief operating officer. Hoyle is expected to succeed Wills as Branch’s next CEO under the company’s succession plan, McGuire confirmed.

Jason Hoyle has been promoted to COO at the Branch Group. Photo courtesy the Branch Group
Jason Hoyle has been promoted to COO at the Branch Group. Photo courtesy Branch Group

Previously, Hoyle served as president for the company’s building and mechanical, electrical and plumbing (MEP) divisions. In his new role, he has assumed responsibility for all construction operations across Branch and will report directly to Wills. Unit leaders for the company’s civil, building and commercial MEP divisions will report to Hoyle.

“Jason embodies our values of collaboration, accountability, and ownership,” Wills said in the news release. “His experience leading multiple business units and his deep commitment to our employee-owners make him exceptionally well prepared for this companywide role.”

Wills joined Branch in 2017 as CFO. Previously, he was CFO at M+W Americas, a global engineering, procurement and construction firm. He told Branch employee-owners of the succession plan earlier this month.

Branch announced other changes Thursday. Colin Robinson has been promoted to executive vice president of Branch’s building division. Robinson, who joined the company two years ago, has more than two decades of experience in the building industry.

Berton Austin has been promoted to executive vice president of Hopkins | Lacy, Branch’s commercial MEP division. Austin has worked at the company for seven years and has more than two decades of experience in building and MEP.

“Colin and Austin have proven track records of leadership and innovation,” Hoyle said in the news release. “Their contributions will be vital as we align our operations and prepare for the next chapter of growth.”

Branch has total revenues of nearly $750 million and more than 1,300 employee-owners.

FAA restores Boeing’s self-certification for 737 Max, 787

Summary

  • lets resume issuing safety certificates for , 787
  • Oversight was imposed after two fatal crashes and quality issues
  • plans to buy 75 Dreamliners, eyes 150 more Max jets
  • FAA still capping 737 Max output at 38 per month amid safety scrutiny

Boeing is getting back the ability to perform final safety inspections on 737 Max jetliners and certify them for flight more than six years after crashes of the then-new model killed 346 people, the Federal Aviation Administration said Friday.

The FAA said it decided to restore the aerospace company’s authorization to issue airworthiness certificates for Max and  passenger planes starting Monday following “a thorough review of Boeing’s ongoing production quality.”

Federal regulators took full control over 737 Max approvals in 2019, after the second of two crashes that were later blamed on a new software system Boeing developed for the aircraft. The FAA ended the company’s right to self-certify Dreamliners in 2022, citing ongoing production quality issues.

Going forward, Boeing and FAA inspectors will take weekly turns performing the safety checks that are required before aircraft are cleared for delivery and declared safe to fly. The FAA said the arrangement will free up more of its inspectors to conduct “rigorous” quality checks on the production line at Boeing plants.

The Associated Press sent emailed requests Friday to Boeing for comment.

The company’s stock price was up about 4% in afternoon trading, as the FAA announcement coincided with news about Boeing securing two more orders from foreign airlines.

Turkey’s flag carrier, Turkish Airlines, said Friday that it planned to buy 75 Dreamliners and wants to eventually buy up to 150 more 737 Max jets. Boeing said the Max purchase would be the largest single order for its best-selling aircraft, if the deal is finalized.

Norwegian Group, the aviation company that operates Shuttle and regional airline Widerøe, also placed an order for 30 Boeing 737 Max 8 planes, Boeing said Friday.

Since President Donald Trump’s return to the White House this year, his administration has made Boeing a focus of its plans to revive . A number of international airlines have signed sales agreements with Boeing in recent months.

Some Boeing critics have questioned how meaningfully the company has reformed its culture and processes to ensure the passenger planes it produces are safe.

The FAA announced earlier this month that it was seeking $3.1 million in fines from Boeing over alleged safety violations between September 2023 and February 2024, including a blowout of a paneled-over exit door on a 737 Max during an Alaska Airlines flight.

After the January 2024 Alaska Airlines incident, the FAA capped Boeing’s production of Max jets to 38 per month. In practice, the production rate fell well below that ceiling last year as the company contended with investigations and a machinists’ strike that idled factories for almost eight weeks.

The company said in July that it reached the monthly cap in the second quarter and would eventually seek the FAA’s permission to increase production.

The FAA said in a Friday statement that if Boeing requests an increase, “onsite FAA safety inspectors will conduct extensive planning and reviews with Boeing to determine if they can safely produce more airplanes.”

Trump announces 30% tariff on upholstered furniture

HIGH POINT — President Trump announced a new  tariff on on Thursday, taking effect on Oct. 1.

At this time, it is unclear whether the new  will be in addition to previously announced tariffs. In addition to the upholstered furniture tariffs, Trump also announced new tariffs on branded drugs, heavy-duty trucks, kitchen cabinets and bathroom vanities.

In a social post, Trump wrote, “The reason for this is the large scale ‘FLOODING’ of these products into the United States by other outside countries. It is a very unfair practice, but we must protect, for national security and other reasons, our manufacturing process.”

Citing Furniture Today research, Reuters reported that “imports to the U.S. hit $25.5 billion in 2024, up 7% from the year before,” adding that “about 60% of those imports came from Vietnam and China.”

Shares for some home furniture retailers, including Wayfair, Williams Sonoma and RH were lower late Thursday following the news, reports noted.

Reston growth equity firm closes $560M investment fund

A -based firm focused on the national security tech market has closed a $560 million .

The firm, Razor’s Edge Management, announced its fourth investment fund closed Thursday. Fund IV is its largest fundraise and had an original target of $400 million.

Razor’s Edge now manages more than $1.25 billion in assets.

Founded in 2010, the firm focuses on high-growth tech companies in the national security and adjacent markets. It will use the fund to scale companies with space, autonomy, cyber, advanced sensing, signal processing, AI-enabled systems and other aerospace and technologies.

“This fund represents a renewed commitment to our mission to ensure the U.S. and its allies maintain technological superiority in an increasingly contested world,” Peggy Styer, co-founder and managing partner of Razor’s Edge, said in a statement. “Our team is built from the national security community, and we invest with deep conviction in companies that will win on the modern battlefield.”

Razor’s Edge has completed four investments out of Fund IV so far: Dark Wolf Solutions, mPower Technology, Expedition Technology and Quantum Leap.

The firm has current investments in Vienna-based tech company Corsha and Herndon geospatial analytics company , among others.

Arlington drone software firm raises $130M in Series B funding

Auterion, an -based provider of software for military drone swarms, announced this week it has raised $130 million in a round led by Bessemer Venture Partners.

The company states that the Series B will help scale the production of its AuterionOS platform and Nemyx systems, which enable autonomous drones to operate as coordinated swarms in combat. says its AI-enabled software aims to “transform the battlefield.”

As part of this investment round, Bessemer Partner Alex Ferrara will join Auterion’s board. Other investors in the funding round include existing investor Lakestar, which led Auterion’s first institutional round (and has invested in every round since) as well as existing investors Mosaic Ventures and Costanoa Ventures.

Of the $130 million from the latest round, $25 million is backed by the U.S. , recently rebranded by President Trump as the .

The company says Russia’s invasion of prompted the need for wartime mass production and that “a seismic shift has emerged in terms of awareness of what is required to protect America and her allies.”

Auterion believes its AI technology will help combatants on the battlefield deploy drone swarms on a massive scale, overwhelming defenses. Auterion says its open platform software has already been deployed in Ukraine.

“The future of warfare is software-defined, unmanned and at scale,” said Auterion Founder and CEO Lorenz Meier in a statement. “Auterion’s customers are taking the lessons from Ukraine and applying them to deploying drone swarms. Decisive advantage on the battlefield won’t be achieved by individual drones — it’ll be achieved by autonomous mass. This funding will allow us to provide Auterion’s AI-enabled swarming capabilities to democratic governments around the world who need to develop those capabilities at scale.”

The company’s AuterionOS platform unifies fleets from multiple manufacturers into a single, coordinated fabric, allowing one operator to control many autonomous vehicles simultaneously.

Auterion, which specializes in software for uncrewed vehicles, was founded in 2017 in Zurich, Switzerland. In 2024, the company relocated its headquarters to Arlington while maintaining engineering operations in Zurich and Munich. The company says it has evolved from its open-platform autopilot origins to become the operating system for autonomous mass operations.

General Dynamics Information Technology wins $1.5B contract

General Dynamics Information Technology, a business unit of -based aerospace and contractor , announced on Thursday that it has been awarded a $1.5 billion contract to modernize the ‘s (STRATCOM) enterprise IT systems and help strengthen operational readiness.

STRATCOM oversees U.S. strategic deterrence, global strike, nuclear command and control and electromagnetic spectrum operations worldwide. Its global missions require an enterprise IT network environment that connects data and systems to national decision makers and mobile warfighters.

Under the contract, GDIT will utilize digital engineering to help reduce costs and enhance efficiency and collaboration among mission partners, integrate artificial intelligence and machine learning into Stratcom’s enterprise data systems and transition the command to a new hybrid cloud environment.

GDIT will also implement advanced cyber and zero-trust solutions to protect the command’s networks and their data from cyber threats.

“Modernizing STRATCOM’s IT capabilities is critical to protecting our national security and maintaining our strategic deterrence edge,” said Brian Sheridan, GDIT’s senior vice president for defense, in a statement. “We look forward to delivering a secure, agile and resilient network that enables our warfighters to be better connected, informed and ready.”

The contract, awarded in May, covers a one-year base period and six option years.

GDIT also provides digital modernization services for the U.S. Central Command as well as technical and mission support services for the U.S. Special Operations Command.

General Dynamics has about 117,000 employees worldwide and reported $47.7 billion in 2024 revenue. It ranked No. 96 on the 2025 Fortune 1000. GDIT reported $8.75 billion in revenue in fiscal 2024 and has about 30,000 employees.