FCA Alert

FCA Alert

Tag Archives: Implied Certification

Seventh Circuit Dismisses “Worthless Services” Action

Posted in Decisions Interpreting FCA Elements, Relator Issues
On August 20, 2014, the Seventh Circuit vacated a judgment against Momence Meadows Nursing Center in an anticipated decision that may limit the scope of “worthless services” liability under the False Claims Act.  In U.S. ex rel. Absher et al. v. Momence Meadows Nursing Center, Inc. et al., two former employees of Momence filed a … Continue Reading

Amgen Seeks Supreme Court Review of Implied Certification Theory of Liability Under the False Claims Act

Posted in Decisions Interpreting FCA Elements
The U.S. Courts of Appeals have been wrestling with the reach of the False Claims Act when the actual claim submitted to the government is not “factually false.”  Some courts have adopted a framework in which a claim that is true on its face can be considered “legally false” where a party somehow involved in … Continue Reading

Falsity And The FCA: The First Circuit’s Blackstone And Amgen Decisions (Part III)

Posted in Decisions Interpreting FCA Elements
In New York ex rel. Westmoreland et al. v. Amgen, Inc. et al., 2011 WL 2937420 (1st Cir. July 22, 2011), the relator filed a qui tam action against pharmaceutical manufacturer Amgen and two other corporate defendants. The relator, a former Amgen employee, alleged that the defendants violated seven state FCAs by engaging in a … Continue Reading

Falsity And The FCA: The First Circuit’s Blackstone And Amgen Decisions (Part II)

Posted in Decisions Interpreting FCA Elements
In United States ex rel. Hutcheson et al. v. Blackstone Medical, Inc., 2011 WL 2150191 (1st Cir. June 1, 2011), the relator, a former regional sales manager for Blackstone Medical, Inc., filed a qui tam action against the medical device manufacturer alleging that it violated the federal FCA. The relator alleged that Blackstone caused hospitals … Continue Reading

Third Circuit Court of Appeals Recognizes Implied False Certification Theory of Liability

Posted in Decisions Interpreting FCA Elements
In a False Claims Act case against United Health Group and its subsidiaries, alleging violations of Medicare marketing regulations and the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b ("AKS"), the Third Circuit joined with the Second, Sixth, Ninth, Tenth, Eleventh, and District of Columbia Circuits in recognizing that there can be implied false certification liability under … Continue Reading

Quality Of Care Cases Under The False Claims Act: Pointers For The Defense (Part II Of III)

Posted in Articles, Decisions Interpreting FCA Elements, Relator Issues, Rule 9(b) Decisions
The topic of discussion this week is United States ex rel. Blundell v. Dialysis Clinic, Inc., No. 5:09-cv-00710 (N.D.N.Y. Jan. 19, 2011) , a qui tam action against a dialysis treatment center based on alleged quality of care issues that was recently dismissed pursuant to Rules 9(b) and 12(b)(6). In the Dialysis Clinic case, the … Continue Reading

Oklahoma District Court Rules that Violation of Minimum Care Requirement May Trigger an Implied False Certification Claim Under the False Claims Act

Posted in Decisions Interpreting FCA Elements
In United States ex rel. Sanchez-Smith v. AHS Tulsa Regional Medical Center, LLC, No. 05-CV-442-TCK-PJC, 2010 WL 4702270 (N.D. Okla. Nov. 10, 2010), a federal district court in Northern Oklahoma held that the failure to provide the minimum number of therapy hours to psychiatric patients required under state health care regulations can provide grounds for … Continue Reading

D.C. Circuit Endorses Implied Certification Theory of Liability and Clarifies Scienter and Damages Standards Under the False Claims Act

Posted in Decisions Interpreting FCA Elements
 In a December 3, 2010 decision in United States v. Science Applications International Corporation, Case No. 04-CV-01543 (D.C. Circuit Dec. 3, 2010), the D.C. Circuit affirmed a trial court’s holding that the implied certification theory of liability does not require the offending false certification to relate to an express condition for payment, holding that a violation … Continue Reading

Can a Manufacturer Be Held Liable Under the False Claims Act if It Delivers Defective Medical Devices to the Government?

Posted in Decisions Interpreting FCA Elements
Since the mid-late 1990s, plaintiffs have been testing the limits of the False Claims Act in health care litigation and have been asserting increasingly creative and far-fetched theories of liability against drug and device companies for various types of alleged conduct, including deceptive marketing practices, off-label marketing, failure to pay the appropriate Medicaid rebate, and … Continue Reading

Massachusetts Court Dismisses Relator’s Complaint Alleging False Statements in Research Grant Application

Posted in Decisions Interpreting FCA Elements
The District of Massachusetts dismissed an action under the False Claims Act brought by Dr. Kenneth James Jones, the “relator,” against Brigham and Women’s Hospital, Massachusetts General Hospital, and a couple of scientists, alleging that they submitted a grant application containing allegedly false statements to the National Institute on Aging, an organization under the National … Continue Reading

Ninth Circuit Adopts Implied Certification Theory

Posted in Decisions Interpreting FCA Elements
The Ninth Circuit recently joined the Second, Sixth, Tenth, and Eleventh Circuits in endorsing the theory of implied certification under the federal FCA. See Ebeid ex rel. United States v. Lungwitz et al., No. 09-16122, 2010 WL 3092637 (Aug. 9, 2010). The implied false certification theory was first recognized by the Court of Federal Claims in Ab-tech … Continue Reading

Tenth Circuit Reverses Dismissal of Relator Action

Posted in Rule 9(b) Decisions
The Tenth Circuit reversed the District Court’s dismissal of a relator’s action, holding that the District Court should have applied a more lenient pleading standard. See United States ex rel. Lemmon v. Envirocare of Utah, Inc., No. 09-4079, 2010 WL 3025021 (10th Cir. Aug. 4, 2010). In Lemmon, the relator brought claims under the FCA, alleging that … Continue Reading
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