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March 24, 2017 General

The Federal Anti-Kickback Statute

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 General

Meeting the Materiality Requirement of the False Claims Act in Cases Brought by Qui Tam Whistleblowers

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 21, 2017 Canada News

Morganti Legal: Amendments to Allied Nevada Gold Corp and Hycroft Mining Corporation Class Action Litigation

TORONTO–(BUSINESS WIRE)–Morganti Legal, P.C., a cross border shareholder’s rights law firm, announces that the plaintiff for the putative class action on behalf of shareholders of “Allied Nevada Gold Corp.”, TSX: “ANV” (now known as Hycroft Mining Corporation) has obtained leave from the Ontario Superior Court of Justice to abandon the […]
March 20, 2017 General

Fraudulent Inducement as a Legal Theory Under the Qui Tam Provisions of the False Claims Act

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 General

Pleading Standards in the Eighth Circuit

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 […]
March 13, 2017 General

False Claims Act Cases Based on Fraudulent Inducement

Liability under the False Claims Act (“FCA”) for fraud in the inducement is established when eligibility to receive funds under a government program was procured by misstatements or other misleading actions.  Courts have repeatedly held fraudulent inducement is a viable theory of liability under the FCA.  See United States ex […]
March 11, 2017 Canada News

Morganti Legal’s Summer Student Earns Victory in Chicago

Morganti Legal’s 2016 summer student, Joseph Tung, along with partner Adam Fucile were awarded overall winning team of The Regional Transactional LawMeet Competition held on February 24, 2017 at Northwestern University School of Law in Chicago. Joseph and Adam, on behalf of University of Detroit Mercy School of Law, competed against eleven other […]
March 8, 2017 General

Whistleblower Lawsuits Against Medicare Advantage Organizations

In addition to the big qui tam case against UnitedHealth Group that has received so much press recently, there is a similar whistleblower case pending in federal court in Texas alleging False Claims Act (“FCA”) claims against a medical coding company, Censeo Health, L.L.C., and several Medicare Advantage organizations (“MAOs”).   […]
March 6, 2017 General

Senator Chuck Grassley and Seema Verma Discuss the Importance of the False Claims Act to CMS

On February 16, 2017, the Senate Finance Committee held a confirmation hearing for Seema Verma to become the nation’s next Administrator of the Centers for Medicare and Medicaid Services (“CMS”). During her testimony, Senators raised wide-ranging questions about the best ways to maintain the quality of the Medicare and Medicaid […]
March 1, 2017 General

Laboratories May be Liable under the False Claims Act for Submitting Claims for Screening Tests to Medicare

Laboratory tests are not medically necessary when they do not “determine a disease or illness. . . or medically or surgically manage an illness.” Strand Analytical Labs., LLC v. Burwell, 2015 WL 4603258, at *17 (S.D. Ind. July 30, 2015) (“The plain meaning of the words diagnose and treat do […]
February 27, 2017 General

A Laboratory’s Liability for Medically Unnecessary Lab Tests under the False Claims Act, Part II

In Part I of this blog series, we discussed when lab tests are considered “reasonable and necessary” under the False Claims Act (“FCA”) and therefore reimbursable by government health insurers such as Medicare and Medicaid, as well as a laboratory’s responsibility for ensuring that lab tests submitted for reimbursement are […]
February 24, 2017 General

A Laboratory’s Liability for Medically Unnecessary Lab Tests under the False Claims Act, Part I

This article addresses the liability of a diagnostic testing laboratory under the False Claims Act (“FCA”) for conducting lab tests that are ordered by a doctor and submitting claims for payment to government health insurers, such as Medicare and Medicaid, for those lab tests when those tests are not medically […]
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