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The False Claims Act Tax Bar

The False Claims Act (“FCA”) generally applies to all false or fraudulent “claims” and broadly defines “claims” as including any request or demand for Government funds.[1]  However, a little known provision of the FCA provides that it “does not apply to claims, records, or statements made under the Internal Revenue […]

Issues Arising Under the False Claims Act’s First-to-File Rule

The First-to-File Rule One of the many procedural obstacles that a potential qui tam plaintiff must overcome is the first-to-file (“FTF”) rule.  This provision of the False Claims Act (“FCA”) states that “no person” other than the Government may intervene or bring a related action based on the facts underlying […]

“Transactions of Fraud” in the Third Circuit

The Third Circuit has repeatedly held that “to constitute ‘allegations or transactions,’ the public disclosure must either allege the actual fraud, or must allege both the misrepresented state of facts and the true state of facts such that an inference of fraud may be drawn.” United States ex rel. Morgan […]

SHAREHOLDER ALERT: Morganti Legal, P.C. Announces Court Allows Shareholder to Commence Securities Cause of Action Against Pretium Resources Inc.

TORONTO–(BUSINESS WIRE)–Morganti Legal, P.C., announces on July 20, 2017, the Ontario Superior Court of Justice authorized the investor in the class action styled Wong v. Pretium Resources (CV-13-00491800-CP) to proceed with a section 138.3 Securities Act cause of action against Pretium Resources Inc. and Robert A. Quartermain. The plaintiff alleges that Pretium Resources Inc. […]

Ninth Circuit Applies Escobar to Assess Materiality in False Claims Act Case

The Ninth Circuit applied the materiality requirement for claims under the False Claims Act (“FCA”) and provided guidance for the application of the Supreme Court’s seminal decision on the FCA’s materiality requirement in Universal Health Servs., Inc. v. United States ex rel. Escobar.[1] The False Claims Act’s Materiality Requirement Under […]

Employees and Competitors Should Be on the Lookout for Violations of “Buy American” Laws in Federal Procurement, Part II

We previously wrote about the adverse inference permitted by the court in United States ex rel. Scutellaro v. Capitol Supply, 2017 WL 1422364 (D.D.C. Apr. 19, 2017).  That inference allowed the whistleblower and the government to prove the falsity element of their claims against a supplier of office products to […]

Employees and Competitors Should Be on the Lookout for Violations of “Buy American” Laws in Federal Procurement, Part I

Earlier this year, the D.C. District Court denied cross-motions for summary judgment in a False Claims Act (“FCA”) case alleging that defendant Capitol Supply sold document shredders manufactured in China through the General Services Administration (“GSA”) website, in violation of the Trade Agreements Act (“TAA”). United States ex rel. Scutellaro […]

Can a Promulgated Court Opinion in a Qui Tam Case be Vacated Upon the Parties’ Request in Order to Facilitate a Settlement? Part II

By Sherrie Savett In Part I of this blog series, we established that Courts have discretion to vacate, but it should not be used “absent exceptional circumstances.”  Amaefule v. Exxonmobil Oil Corp., 630 F. Supp. 2d 42, 43 (D.D.C. 2009) (quoting U.S. Bancorp Mortg. Co. v. Bonner Mall P’ship, 513 […]

Can a Promulgated Court Opinion in a Qui Tam Case be Vacated Upon the Parties’ Request in Order to Facilitate a Settlement? Part I

By Sherrie Savett The Motivation to Vacate Often the parties in a hotly contested case want to settle, but the removal of a negative opinion affecting one side or the other is even more important than the money involved.  This can be true for defendants who want to remove a […]

Court Allows False Claims Act Case Involving Janssen’s HIV/AIDS Drugs to Proceed

On May 31, 2017, the United States District Court for the District of New Jersey allowed relators’ False Claims Act (“FCA”) lawsuit against Janssen to proceed to litigation.  United States et al. v. Johnson & Johnson, et al., Civ. A. No. 12-7758, 2017 WL 2367050 (D.N.J. May 31, 2017).  Although […]

Circuit Court Endorses Tri-Partite Inquiry in Analyzing Medical Necessity Under the False Claims Act

On May 1, 2017, in United States ex rel. Petratos v. Genentech, Inc., 855 F.3d 481 (3d Cir. 2017), the United States Court of Appeals for the Third Circuit endorsed a tri-partite approach in analyzing the medical necessity theory of liability under the False Claims Act.  While the Third Circuit […]

History and Purpose of the Public Disclosure Bar

Early Public Disclosure Bar In the early 1940s, some enterprising individuals filed False Claims Act (“FCA”) actions based not on their own independent knowledge of a fraud but on information revealed in criminal indictments. S.Rep. No. 99–345, at 10–11 (1986).  This harmed the government because the FCA required the government […]