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Bringing a False Claims Act Case Without Identifying Specific Claims to the Government

We wrote earlier about the important holding in one of this Firm’s cases, U.S. ex rel. Groat v. Boston Heart Diagnostics Corp., 2017 WL 2533341 (D.D.C. June 9, 2017), regarding the responsibility of a medical laboratory to ascertain whether lab tests ordered by physicians are medically necessary. That opinion also […]

The False Claims Act’s Public Disclosure Bar Routinely Results in Windfalls to Fraudsters

In 1986, in an effort “to strike a balance between encouraging private persons to root out fraud and stifling parasitic lawsuits,” United States ex rel. Zizic v. Q2Administrators, LLC, 728 F.3d 228, 235 (3d Cir. 2013), Congress narrowed the the public disclosure bar so that more whistleblowers would file cases. […]

Morganti Legal, P.C. Announces Shareholder Investigation of Colt Resources, Inc.

TORONTO–(BUSINESS WIRE)–Morganti Legal, P.C., announces that it has been contacted by investors to investigate Colt Resources, Inc. (TSX-V: “GTP” and CUSIP: “196874”) and Nikolas Perrault, the Company’s former President and Chief Executive Officer. The focus of the investigation concerns the unauthorized and unannounced allocation of the Company’s capital to Turcolt […]

Health First Entities Agree to Pay $3.5 Million to Resolve False Claims Act Lawsuit

Health First, Inc. and related entities have agreed to pay $3.5 million to resolve a False Claims Act lawsuit filed in 2014 by a whistleblower (the “relator”). The related entities include Health First, Inc., Health First Health Plans, Inc., Health First Medical Group, Holmes Regional Medical Center, Palm Bay Hospital, […]

Detour Gold Settlement Receives Court Approval

Morganti Legal is proud to announce that on June 27, 2017, the Ontario Superior Court of Justice approved the final settlement in this securities class action against Detour Gold Corporation (“Detour“) and its former Chief Executive Officer Gerald Panneton. The claim was brought on behalf of shareholders of Detour who […]

Court Finds That Labs Must Ensure That the Tests They Perform are Medically Necessary

On June 9, 2017, the United States District Court for the District of Columbia denied the defendant’s motion to dismiss in the False Claims Act lawsuit titled U.S. et al. ex rel. Tina D. Groat v. Boston Heart Diagnostics Corp., No. CV 15-487 (RBW), 2017 WL 2533341, at *1 (D.D.C. […]

When Does a Drug Manufacturer’s Savings Card Program or Discount Coupon Violate the Anti-Kickback Statute?

A drug manufacturer’s savings card program or discount coupon under which individuals who have Medicare Part D prescription drug coverage receive discounts may violate the Anti-Kickback Statute (“AKS”), unless the drug being purchased is statutorily excluded from Part D coverage.  The key here is that the drug must be excluded […]

Pharmacy Discount Programs Can Lead to a Violation of the False Claims Act

Retail pharmacies that offer a discount drug pricing program to consumers must charge Medicare the same prices for drugs that they charge consumers who participate in those programs. To do otherwise violates the False Claims Act (“FCA”). The specific question is whether a pharmacy that offers a discount drug pricing […]

Common Challenges With the Qui Tam Seal Requirement: What Whistleblowers Can Expect

One of the various procedural requirements imposed on whistleblowers is that they file their cases “under seal.”  Not much is explained in the False Claims Act (“FCA”) as to what that means, other than the general understanding that no notification of the filing to the defendant takes place, what is […]

District Court Rejects the Industry-Wide Public Disclosure Bar, Part II

In Part I of this blog series, we discussed the False Claims Act (“FCA”)’s public disclosure bar and the so called industry-wide public disclosure bar. In this blog post, we will examine a 2017 qui tam case that discusses and rejects the industry-wide public disclosure bar. An industry-wide public disclosure bar […]

District Court Rejects the Industry-Wide Public Disclosure Bar, Part I

The False Claims Act (“FCA”) permits private individuals, known as relators, to sue on the Government’s behalf to recover funds that were fraudulently or falsely obtained from the Government.  If a relator successfully recovers money for the Government, the FCA provides that the relator is entitled to a substantial percentage […]

The Unwritten Nexus Requirement: Requiring a Connection Between Federal Funds and False Claims Under the False Claims Act

The federal government provides funding to an incredible number of non-government entities through direct spending and grants. The False Claims Act (“FCA”) provides that anyone who presents “false or fraudulent claims” or who commits other similar offenses is subject to substantial penalties. “Claim” is defined as including any request for […]