Ripping the Veil Off the Government’s Qui Tam Investigations

Posted on May 15, 2018 in Case Analysis, Government Intervention, Materiality, Seal

On May 10, 2018, United States Senior District Judge for the Central District of Illinois, Joe Billy McDade, issued an order that should form the template for all courts asked to keep the Government’s False Claims Act extension motions under seal.[1] Far too often courts simply grant the Government’s ex... Continue Reading →

Tags: Champion Fitness, False Claims Act, FCA, Morgan, qui tam, seal, unseal

The D.C. Circuit Draws the Line at “Potential” Penalties Being Considered Obligations Under the False Claims Act

Posted on January 22, 2018 in Case Analysis, Rule 12(b)(6), Rule 9(b)

In United States ex rel. Schneider v. JPMorgan Chase Bank, Nat’l Ass’n. [1], the D.C. Circuit re-affirms its position that contingent penalties are not obligations under the False Claims Act (“FCA”). BACKGROUND In the initial suit[2], Relator brought a qui tam action under the FCA against mortgage loan servicer JPMorgan... Continue Reading →

Tags: False Claims Act, FCA, penalty, potential, qui tam

Government Traps, Zaps and Zingers

Posted on January 15, 2018 in Legal Updates, Materiality

In an opinion loaded with linguistic hooks, the United States District Court for the Middle District of Florida recently reinforced the Supreme Court’s holding in Escobar, enthusiastically highlighting the importance of materiality and scienter in FCA cases. Background In U.S. ex rel. Ruckh v. Salus Rehabilitation, LLC, et al., Relators... Continue Reading →

Tags: Escobar, False Claims Act, FCA, materiality

Second Circuit Falls in Line for FCA Pleading Requirements

Posted on October 9, 2017 in False Certification, Legal Updates, Materiality

On September 7, 2017, the Second Circuit realigned its stance on false certifications under the False Claims Act (“FCA”) in light of the Supreme Court’s decisions in Universal Health Services, Inc. v. United States ex rel. Escobar, 136 S.Ct. 1989, 195 L.Ed.2d 348 (2016). BACKGROUND In the initial action, relators brought a qui... Continue Reading →

Tags: 2nd Circuit, Bishop, certification, Escobar, express, False Claims Act, FCA, implied, pleading, Second Circuit, Wells Fargo

Tenth Circuit Questions Its Previous Decision Defining “Intervene” in Light of Supreme Court Decision and Further Qualifies Public Disclosure Bar

Posted on September 25, 2017 in Case Analysis, Original Source, Public Disclosure Bar

The Tenth Circuit’s recent decision in United States ex rel. Little v. Triumph Gear Sys., Inc. refines its definition of “intervene” in light of the Supreme Court’s decision in United States ex rel. Eisenstein v. City of New York. In doing so, the Tenth Circuit also seems to indicate that the original filing... Continue Reading →

Tags: bar, False Claims Act, FCA, jurisdiction, original source, public disclosure

Department of Justice Announces $42 Million Settlement for Alleged False Claims Act Violations

Posted on August 11, 2017 in Anti-Kickback Statute, Case Analysis, Settlement, Stark Act, Statutes and Regulations

Recently, the Department of Justice (“DOJ”) announced it had entered into a $42 million settlement (“Settlement”)[1] with the owners of a California acute care hospital (“Parent Company”) to resolve allegations that the Parent Company had violated the False Claims Act by submitting false claims to Medicare and MediCal (California Medicaid)... Continue Reading →

Tags: AKS, False Claims Act, FCA, Medical Director, referrals, settlement, Stark

The False Claims Act and Indian Tribes: To What Extent Does Sovereign Immunity Protect Tribes and Their Business Activities?

Posted on May 19, 2017 in Case Analysis

Executive Summary: Dahlstrom v. Sauk-Suiattle Indian Tribe, No. C16-0053JLR, 2017 WL 1064399 (W.D. Wash. Mar. 21, 2017) On March 21, 2017, a federal judge agreed with the Sauk-Suiattle Indian tribe (the “Sauk-Suiattle” or the “Tribe”) that it could not be sued under the federal False Claims Act (“FCA”) due to... Continue Reading →

Tags: Dahlsrom, False Claims Act, FCA, Indian, Sauk-Suiattle, Tribal, Tribe, Washington

Fourth Circuit Says Attorney General Holds “Unreviewable Veto Power” Over Qui Tam Settlements and Sends Statistical Sampling Issue Back to the Trial Court

Posted on February 16, 2017 in Case Analysis, Damages, Discovery, Settlement

The Attorney General of the United States has an unreviewable veto power over qui tam settlements, according to the Fourth Circuit’s recent published decision in United States ex rel. Michaels v. Agape Senior Community.[1] In the same decision, the court declined to decide an issue raised by the relators over... Continue Reading →

Tags: Agape, False Claims Act, Fourth Circuit, government, Michaels, qui tam, settlement, statistical sampling, statistics, veto

Courts Return to Real Particularity to Meet Rule 9(b)’s “Fraud with Particularity” Requirement

Posted on January 31, 2017 in Rule 9(b)

The courts appear to be walking back their trend toward loosening False Claims Act (“FCA”) pleading requirements. The FCA is a fraud statute, and lawsuits alleging FCA violations must be pled under Rule 9(b) of the Federal Rules of Civil Procedure: Fraud or Mistake; Conditions of Mind. In alleging fraud or mistake,... Continue Reading →

Tags: Bledsoe, Clausen, False Claims Act, fraud with particularity, Hirt, Jallali, Mastej, Prather, Rule 9(b), Walgreen

Trial Court Pushes Back on “Fraud with Particularity” Requirement

Posted on January 25, 2017 in Rule 9(b)

The Federal District Court for the Middle District of Florida appears to have rejected recent direction from the Eleventh Circuit Court of Appeal to deny a motion to dismiss in a False Claims Act case. In United States ex rel. Napoli et al. v. Premier Hospitalists PL, et al. the... Continue Reading →

Tags: Clausen, False Claims Act, FCA, fraud, fraud with particularity, Jallali, Mastej, Napoli, Premier Hospitalists, Rule 9