April 24, 2017
False Claims Act Legal News
In United States ex rel. Hayes v. Allstate Ins. Co., et al., Case No. 16705, 2017 WL 1228551 (2d Cir. Apr. 4, 2017), the Second Circuit addressed an objection that it lacked jurisdiction over a whistleblower’s qui tam suit pursuant to what is known as the “first-to-file” rule. 31 U.S.C. § 3730(b)(5). That provision of the False Claims Act (“FCA”) states that “[w]hen a person brings an action […]
April 17, 2017
False Claims Act Information
Basics of the Small Business Association 504 Loan Program The Small Business Association (“SBA”) 504 Loan Program offers small businesses long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization. A Certified Development Company (“CDC”) is a nonprofit corporation certified by the SBA that generates, closes, and services […]
April 12, 2017
False Claims Act Information
Violations of the Anti-Kickback Statute Form the Basis of False Claims Act Liability Congress has long viewed the elimination of kickbacks as central to any efforts to combat Medicare and Medicaid fraud and abuse. United States v. Greber, 760 F.2d 68, 70-71 (3d. Cir. 1985). Because kickback schemes negatively affect […]
April 10, 2017
False Claims Act Information
By law, qui tam cases must be filed under seal. This means that there is no public record of the case having been filed, and the defendant is unaware of the case until the seal is lifted. A plaintiff who breaks the seal by discussing the seal publicly may forfeit […]
April 7, 2017
False Claims Act Information
Although the federal False Claims Act (“FCA”) and most state statutes provide a whistleblower with claims against retaliation by an employer, it is not clear whether that protection extends beyond the specific company that you reported against. Unfortunately, some prospective or subsequent employers might try to avoid hiring you or […]
April 5, 2017
False Claims Act Legal News
In an opinion issued on March 31, 2017, District Judge Jesse M. Furman of the Southern District of New York substantially denied defendant Allergan, Inc.’s motion to dismiss claims arising under the False Claims Act (“FCA”) and state statutory analogs, in litigation captioned United States ex rel. Wood v. Allergan, […]
March 29, 2017
Grant Fraud
The federal government, through its agencies, offers grant funding opportunities to private individuals and entities. Numerous federal agencies offer grants, including the Department of Defense, Health and Human Services and the Department of Energy. Often federal grants are aimed at funding innovative research. In a nutshell, the grant process involves […]
March 27, 2017
False Claims Act Legal News
One of the ways in which companies attempt to discourage whistleblowing or to punish actual whistleblowers is by asserting legal claims against them for using company documents, sometimes in violation of employment agreements or other company employee policies or under various tort laws.[1] In one recent case, for example, the corporate […]
March 24, 2017
Healthcare Fraud
The federal Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), (“AKS”) arose out of congressional concern that remuneration provided to those who can influence healthcare decisions would result in goods and services being provided that are medically unnecessary, of poor quality, or harmful to a vulnerable patient population. To protect the integrity […]
March 22, 2017
False Claims Act Information
The False Claims Act’s Materiality Requirement Under the express language of the False Claims Act (“FCA”), material means having a “natural tendency to influence or be capable of influencing” the government’s decision to pay a claim. 31 U.S.C. § 3729(a)(4). The Escobar Decision Under the 2016 Supreme Court case of […]
March 20, 2017
False Claims Act Information
While many defendants may assert that fraudulent inducement is not a viable theory of liability in a qui tam case under the False Claims Act (“FCA”), the truth is that the plentiful and better-reasoned authorities to consider this issue support FCA liability for defrauding the FDA. See United States v. […]
March 15, 2017
Rule 9(b)
Federal Rule of Civil Procedure Rule 9(b) Relators in qui tam cases under the False Claims Act (“FCA”) face considerable challenges in meeting pleading requirements in many circuits, including the 8th Circuit. The Rule 9(b) standard in the Eighth Circuit is well described by the Court in United States ex […]