FCA Alert

FCA Alert

Monthly Archives: April 2011

Defendant Wins False Claims Act Trial After the Government Kills $8.9M Settlement Agreement Negotiated By Relator; Affirmed By Fourth Circuit

Posted in Evidentiary Issues
In United States ex rel. Ubl v. IIF Data Solutions, Case No. 09-2280, 2011 WL 1474783 (4th Cir. 2011), the Fourth Circuit affirmed a verdict for a defendant in a False Claims Act trial in a case where the Government declined to intervene and held the following:  (1) the district court properly refused to enforce a… Continue Reading

Civil Investigative Demands & The False Claims Act

Posted in Articles
Prior to 1983, the government relied primarily on two sources to investigate civil FCA cases: the work of agency Inspector Generals and material developed in criminal investigations, usually through the use of grand jury subpoenas. In United States v. Sells Engineering, Inc., 463 U.S. 418 (1983), the Supreme Court held that Rule 6(e) of the… Continue Reading

S.D.N.Y. Dismisses FCA Case Against Lab Testing Companies Because Complaint Was Based On Client Confidential Information Disclosed By Former General Counsel

Posted in Relator Issues
In United States ex rel. Fair Laboratory Practices Associates v. Quest Diagnostics, Inc., Unilab Corp. et al., 05-CV-5393 (S.D.N.Y. April 5, 2011), the Southern District of New York dismissed a qui tam action against laboratory testing companies Quest Diagnostics and Unilab because the qui tam complaint was based on confidential information disclosed by Unilab’s former… Continue Reading

Court in Southern District of New York Dismisses Relator’s False Claims Act Complaint Because No Law or Regulation Prohibited Hospital’s Billing Method

Posted in Decisions Interpreting FCA Elements
A former independent consultant to Beth Israel Medical Center (“BIMC”), Cleuza Colucci, brought a False Claims Act action against the hospital, alleging that it billed for and received inflated Medicare payments by purchasing Kings Highway and Doctors Hospital and then taking advantage of rate increases resulting from consolidation with BIMC for purposes of billing Medicare. The… Continue Reading

Georgia District Court Dismisses FCA Claim Based On A Theory Of Promissory Fraud

Posted in Articles
After being fired as its CEO, Angela Parato filed a False Claims Act action against her former employer, Unadilla Health Care Center, Inc. (UnaHealth). Parato alleged, among other things, that UnaHealth, a Federally Qualified Health Center, made false certifications in its applications for grants under Section 330 of the Public Health Service Act to the… Continue Reading

OIG Determines that 24 State False Claims Acts Do Not Comply with Federal Requirements

Posted in Legislation & Amendments
The Office of Inspector General for the Department of Health and Human Services (OIG) completed its review of 24 individual state false claims acts for compliance with Section 1909 of the Social Security Act.  This section, made effective on January 1, 2007, is intended to encourage states to enact or update existing state false claims… Continue Reading

Defining Off-Label Marketing Of Prescription Drugs: Conduct Likely To Trigger Government Scrutiny

Posted in Articles
Here is a copy of the off-label marketing presentation that I prepared for ACI’s conference on Fraud and Abuse in the Sale and Marketing of Drugs held last week in New York.  The presentation slides include: A summary chart of off-label marketing settlements with drug companies between 2004 and 2010. (Slide Nos. 1-4)   A summary chart showing which U.S. Attorney’s Offices have been most… Continue Reading