Forsberg V. Knoxville Comprehensive Breast Center, Pllc

Case Background

On February 14, 2022, Dr. David Forsberg, a radiologist, filed a lawsuit against Knoxville Comprehensive Breast Center, PLLC where he worked under the False Claims Act. The case was filed in the United States District Court, Tennessee Eastern (Knoxville). The case was assigned to District Judge Katherine A Crytzer and referred to Magistrate Judge Debra C Poplin. [Case number: 3:22cv58]

Cause

David A. Forsberg, M.D., lived in Knoxville, Tennessee. The Knoxville Comprehensive Breast Center, PLLC, known as “KCBC,” was formed in 2000 and operated at 1400 Dowell Springs Boulevard. Andrew Gittschlag acted as its registered agent. Dr. Forsberg was a licensed Radiologist in Tennessee.

Dr. Kamilia Kozlowski owned and served as CEO and Medical Director of KCBC. She had the authority to discipline employees. William Brock assisted her in managing security and compliance, also acting as an employee.

Dr. Forsberg began working at KCBC in December 2013, demonstrating competence and suitability for the role. He was wrongfully terminated on March 12, 2021, a decision made by Dr. Kozlowski with input from Brock. At termination, Dr. Forsberg had an Employment Agreement with KCBC, which Defendant kept confidential.

His Employment Agreement started around December 2, 2019, and renewed every two years. In early 2020, Dr. Forsberg grew concerned about Medicare and Medicaid fraud. He found his name fraudulently listed as the “ordering physician” for genomic tests by Agendia, Inc., specifically MammaPrint, without his consent.

This test determined whether patients might benefit from chemotherapy, a decision outside Radiologists’ authority. In August 2020, Dr. Forsberg learned of fraudulent overutilization of MammaPrint testing, many of which were unnecessary.

He also identified issues with Ambry Genetics tests, finding that KCBC lacked protocols for patient notification and counseling. In late September 2020, Dr. Forsberg raised concerns with Dr. Kozlowski, who dismissed them.

In early October 2020, Dr. Forsberg and two other Radiologists sent letters outlining their concerns, which constituted “protected activity” under the False Claims Act. Afterward, Dr. Kozlowski expressed anger and adopted a retaliatory attitude. Ultimately, she terminated Dr. Forsberg without cause, falsely reporting “gross misconduct,” which harmed his reputation and denied him COBRA benefits.

Damages

Due to the Defendant’s wrongful actions, he experienced a significant loss of income and benefits, both past and future. This included back pay and front pay. Additionally, he suffered damage to his reputation and character. He also endured considerable emotional distress, humiliation, and embarrassment.

The Defendant’s actions were fraudulent, malicious, intentional, and reckless, which justified the imposition of substantial punitive damages.

Therefore, the Plaintiff sought various forms of relief against the Defendant. He requested compensatory damages, including back pay and front pay, or reinstatement if the Court found it appropriate. Furthermore, he sought double the amount of his back pay, along with interest. The Plaintiff also requested punitive damages, liquidated damages, and prejudgment interest. He sought reasonable attorney fees and costs, as well as a jury trial for this case. Finally, he asked for any other general or injunctive relief that the Court deemed appropriate.

Key Arguments and Proceedings

Legal Representation

  • Plaintiff(s): David A. Forsberg M.D.
    • Counsel for Plaintiff(s): David Alexander Burkhalter , III | Zachary J Burkhalter | David A Burkhalter , II
  • Defendant(s): Knoxville Comprehensive Breast Center, PLLC
    • Counsel for Defendant(s): Jason H. Long

Claims

In this lawsuit, Forsberg sued the Knoxville Comprehensive Breast Center, alleging seven distinct claims. The first claim involved retaliation under the False Claims Act, asserting that the company fired him for raising concerns about billing fraud. He also filed a similar claim under the Tennessee Public Protection Act.

Forsberg further alleged breach of contract, arguing that he did not receive proper notice of his termination. He claimed that the Knoxville Comprehensive Breast Center interfered with his “economic enjoyment” by contacting potential employers about him. Additionally, he filed separate libel and false light claims related to an internal email that suggested he had broken the law.

The final claim in Forsberg’s suit was based on the Federal Stored Communications Act. He alleged that after the “lock-out,” Kozlowski’s son improperly accessed his Gmail account. Forsberg sought a combination of damages, including compensatory and punitive damages, for each of the seven claims he made against the Defendant.

Defense

Knoxville Comprehensive Breast Center denied any wrongdoing. They stated that Forsberg was terminated not due to his concerns about genetic testing, but because he did not exert his best efforts. At the critical meeting on February 10, 2021, just before the lock-out, Forsberg indicated he planned to start his own business and might take staff with him, actions perceived to contradict the company’s interests

Regarding the alleged libel, the defense argued that the information was shared only internally and claimed Forsberg had engaged in wrongdoing. For the federal email allegation, the defense contended that there was no hacking involved and asserted that Forsberg did not have a privacy interest in his email account.

Jury Verdict

The case lasted seven days, concluding on the last day of April. On May 01, 2024, the jury delivered a mixed verdict. Forsberg lost on counts related to False Claims retaliation, Tennessee Public Protection Act retaliation, and contract issues. However, he won on charges of intentional interference with economic enjoyment, libel, false light, and the federal email claim. Notably, the jury found that Knoxville Comprehensive Breast Center committed four violations regarding the email claim.

The jury did not award any compensatory damages for intentional interference or the email claims. However, Forsberg received $10,000 each in compensatory damages for both false light and libel. Additionally, the jury determined that Forsberg was entitled to punitive damages for the libel, false light, and email claims.

The second phase for punitive damages took place the following day. The jury assessed punitive damages of $125,000 for each relevant count: libel, false light, and federal email intrusion. This resulted in total punitive damages of $375,000. Thus, the combined verdict for Forsberg amounted to $395,000.

Court Documents:

Available upon request