Suit claims AIDS foundation scammed Medicare for $20M

A lawsuit filed in South Florida federal court alleges one of the nation's largest suppliers of HIV and AIDS medical care bilked federal Medicare and Medicaid programs in a $20 million scam that spanned 12 states.

Three former managers of the AIDS Healthcare Foundation filed the suit last week, alleging the company paid employees and patients kickbacks for patient referrals.

The company denied paying kickbacks or violating the law in any way, saying it would continue to care for thousands of HIV and AIDS patients around the U.S. while fighting the claims.

Employees were paid $100 bonuses for referring patients with positive test results to its clinics and pharmacies. The lawsuit alleges kickbacks started in 2010 at the company's California headquarters and spread to programs in Georgia, Louisiana and Florida.