Cranbury-Based MJH Healthcare Holdings to Pay $2 Million in False Claims Act Settlement

Company allegedly misrepresented mailing eligibility to obtain reduced postage rates from U.S. Postal Service

CRANBURY — MJH Healthcare Holdings, LLC and affiliated entities have agreed to pay $2,006,424 to resolve allegations that they violated the False Claims Act by improperly certifying eligibility for reduced postal rates on mailings that did not meet federal requirements, U.S. Attorney Philip R. Sellinger announced.

The settlement resolves claims that MJH and its subsidiary, MJH Life Sciences, LLC—based in Cranbury, New Jersey—used the United States Postal Service’s (USPS) periodicals postage rate for 40 mailings between October 2021 and June 2024 despite not qualifying for that rate. MJH publishes educational and promotional materials aimed at healthcare providers and patients.

According to the allegations, MJH knowingly included inaccurate data in its certifications to USPS in order to meet the requirements for the reduced rate, which is intended only for publications where more than 50% of mailed issues are requested by recipients. MJH allegedly inflated its requester counts in two key ways:

1. By including recipients from third-party lists whose status as qualified requesters was not verified; and

2. By counting requests that were older than three years, which are not permissible under postal regulations.

Had MJH accurately reported this data, the company would have failed to meet the eligibility threshold for the lower postage rate, federal authorities said.

“The United States relies on individuals and companies doing business with it to accurately report what they owe the government. When they do not, we will not hesitate to take appropriate steps to protect the public fisc.” - U.S. Attorney Alina Habba

The case was initiated under the whistleblower, or qui tam, provisions of the False Claims Act by John Burke, a former employee of an MJH affiliate. Burke filed the complaint on behalf of the U.S. government and will receive $341,092 from the settlement. The lawsuit is titled U.S. ex rel. Burke v. MJH Healthcare Holdings, LLC, et al., No. 3:22-cv-07367, filed in the District of New Jersey.

“The USPS OIG will continue to aggressively investigate companies that defraud the Postal Service,” said Tammy Hull, Inspector General U.S. Postal Service. “This settlement demonstrates that our special agents will work with the United States Department of Justice and the United States Attorney’s Office to identify companies that misrepresent their eligibility for lower postage rates.”

The settlement follows an investigation by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of New Jersey, and the USPS Office of Inspector General. Assistant U.S. Attorney Paul Kaufman and Trial Attorney Wesley Heath led the government’s efforts in the case.

The settlement resolves allegations only. No determination of liability has been made.