Articles and Blogs

Hospitals and health care systems that successfully defend against frivolous FCA actions may oftentimes recover fees and expenses incurred as part of their defense. Recently, however, the United States District Court for the District of Utah broadly connected this “frivolous” standard with Rule 9(b)’s pleading requirements—a decision that may stave off whistleblowers who have... READ MORE

On January 19, 2021, the U.S. Court of Appeals for the Eleventh Circuit in Hickman v. Spirit of Athens[1] dismissed a whistleblower retaliation claim under the False Claims Act (“FCA”), finding that the employer’s alleged “garden-variety fraud” did not fall under the statute. Two employees of a nonprofit were terminated after seeking to audit... READ MORE

The First Circuit ruled that an employer would not have acted against a whistleblower ‘but for’ their engaging in conduct the FCA protects. It joined other circuits that have found the FCA’s statutory protections much like other federal employment statutes. Background In this case[1], the Defendant is a medical device company that had several... READ MORE

A recent decision by the Seventh Circuit Court of Appeals addressed the sometimes hostile relationship between the government and the whistleblowers it relies on to prosecute False Claims Act (“FCA”) actions. The resulting opinion was twofold: If the government wants to dictate FCA litigation it must intervene in the lawsuit; and The government has... READ MORE

An accepted doctrine of FCA pleading requires whistleblowers or the Government to assert an “objective falsehood” in their complaints. Last week, the Ninth Circuit nixed the requirement. The Ninth Circuit reversed a district court’s dismissal tied to a failure to plead an objective falsehood under FCA. The Court held that whistleblowers or the Government... READ MORE

The Southern District of Indiana recently held that a whistleblower must present sufficient evidence to support each alleged false claim, not just one, to survive summary judgment.[1] This holding is a win for FCA defendants that deal in a high volume of claims submitted to the government—like hospitals—and requires whistleblowers to identify every claim... READ MORE

On January 9, 2020, the Department of Justice (“DOJ”) announced that it collected over $3 billion in settlements and judgments under the False Claims Act (“FCA”) in the federal fiscal year 2019. The FCA has historically been the government’s primary tool for combatting perceived fraud, waste and abuse in the health care system, and... READ MORE

The Eastern District of Texas affirmed the Government’s right to dismiss FCA actions over a whistleblower’s objections. The Court held that the Government may dismiss claims to avoid the costs of extended litigation. The United States Declined to Intervene Health Choice Alliance, LLC filed an FCA action alleging that the defendants defrauded the United... READ MORE

On July 5, 2019, the United States Court of Appeals, District of Columbia Circuit issued an opinion enforcing Supreme Court precedent that the False Claims Act (“FCA”) should be reserved for true fraud against the government—not “garden-variety regulatory violations.” In U.S. ex rel. Kasowitz Benson Torres LLP v. BASF Corp.,[1] the D.C. Circuit reviewed... READ MORE

In a recent case out of Kansas, the Tenth Circuit reiterated the importance of the FCA’s materiality and scienter requirements that the Supreme Court set forth in Escobar: FCA claims must satisfy materiality and knowledge requirements—both of which are rigorous and strictly enforced. A whistleblower must prove knowledge in an implied certification case—it cannot... READ MORE