Articles and Blogs

False Claims Act Defense

Fifth Circuit Addresses Pre-Suit Disclosure and Causation Requirements for FCA Theories of Liability

[10/17/17]

Posted on October 17, 2017 in False Claims Act Defense

Published by: Hall Render

The Fifth Circuit recently addressed pre-suit disclosure and causation requirements for FCA theories of liability in United States ex rel. King v. Solvay Pharmaceuticals Inc., 871 F.3d 318 (5th Cir. 2017). Two former employees (“Relators”) of Solvay Pharmaceuticals, Inc. filed a qui tam suit claiming that Solvay induced false Medicaid claims through a variety... READ MORE

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Second Circuit Falls in Line for FCA Pleading Requirements

[10/09/17]

Posted on October 9, 2017 in False Claims Act Defense

Published by: Hall Render

On September 7, 2017, the Second Circuit realigned its stance on false certifications under the False Claims Act (“FCA”) in light of the Supreme Court’s decisions in Universal Health Services, Inc. v. United States ex rel. Escobar, 136 S.Ct. 1989, 195 L.Ed.2d 348 (2016). Background In the initial action, relators brought a qui tam action... READ MORE

Tenth Circuit Questions Its Previous Decision Defining “Intervene” in Light of Supreme Court Decision and Further Qualifies Public Disclosure Bar

[09/21/17]

Posted on September 21, 2017 in False Claims Act Defense

Published by: Hall Render

The Tenth Circuit’s recent decision in United States ex rel. Little v. Triumph Gear Sys., Inc. refines its definition of “intervene” in light of the Supreme Court’s decision in United States ex rel. Eisenstein v. City of New York. In doing so, the Tenth Circuit also seems to indicate that the original filing by... READ MORE

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Arbitration Agreement Not Binding on Whistleblower, Says Ninth Circuit

[09/15/17]

Posted on September 15, 2017 in False Claims Act Defense

Published by: Hall Render

On Monday, September 11, 2017, the U.S. Court of Appeals for the Ninth Circuit decided that a carefully drafted arbitration agreement between an employee and her employer did not cover the employee’s whistleblower action under the Federal False Claims Act (“FCA”) or Nevada’s state-law equivalent.[1] The court’s opinion in this case demonstrates that even the strong... READ MORE

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Seventh Circuit: Whistleblowers Cannot Build FCA Claims upon Public Information and Speculation

[08/14/17]

Posted on August 14, 2017 in False Claims Act Defense

Published by: Hall Render

The public disclosure bar remains one of the most important tools for disposing of False Claims Act (“FCA”) claims. The Seventh Circuit’s recent decision in United States ex rel. Bellevue v. United Health Services of Hartgrove, Inc. clarified the effect of the 2010 amendments to the public disclosure bar and affirmed the dismissal of whistleblower... READ MORE

The False Claims Act and Indian Tribes: To What Extent Does Sovereign Immunity Protect Tribes and Their Business Activities?

[05/19/17]

Posted on May 19, 2017 in False Claims Act Defense

Published by: Hall Render

Executive Summary: Dahlstrom v. Sauk-Suiattle Indian Tribe, No. C16-0053JLR, 2017 WL 1064399 (W.D. Wash. Mar. 21, 2017) On March 21, 2017, a federal judge agreed with the Sauk-Suiattle Indian tribe (the “Sauk-Suiattle” or the “Tribe”) that it could not be sued under the federal False Claims Act (“FCA”) due to the tribe’s immunity from... READ MORE

Third Circuit Issues Decision Explaining Pleading Standards and Materiality After Escobar

[05/12/17]

Posted on May 12, 2017 in False Claims Act Defense

Published by: Hall Render

On May 1, 2017, the United States Court of Appeals released an important decision interpreting the False Claim Act’s (“FCA’s”) materiality requirement in light of the Supreme Court’s 2016 decision in Universal Health Services Inc. v. United States ex rel. Escobar. The case, United States ex rel. Petratos v. Genentech, revolved around allegations regarding the... READ MORE

Fourth Circuit Says Attorney General Holds “Unreviewable Veto Power” Over Qui Tam Settlements and Sends Statistical Sampling Issue Back to the Trial Court

[02/17/17]

Posted on February 17, 2017 in False Claims Act Defense

Published by: Hall Render

The Attorney General of the United States has an unreviewable veto power over qui tam settlements, according to the Fourth Circuit’s recent published decision in United States ex rel. Michaels v. Agape Senior Community.[1] In the same decision, the court declined to decide an issue raised by the relators over the trial court’s refusal... READ MORE

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Courts Return to Real Particularity to Meet Rule 9(b)’s “Fraud with Particularity” Requirement

[02/02/17]

Posted on February 2, 2017 in False Claims Act Defense

Published by: Hall Render

The courts appear to be walking back their trend toward loosening False Claims Act (“FCA”) pleading requirements. The FCA is a fraud statute, and lawsuits alleging FCA violations must be pled under Rule 9(b) of the Federal Rules of Civil Procedure: Fraud or Mistake; Conditions of Mind. In alleging fraud or mistake, a party must state... READ MORE

Statistical Evidence and the False Claims Act

[02/02/17]

Posted on February 2, 2017 in False Claims Act Defense

Published by: Hall Render

The False Claims Act¹ is a fraud statute; therefore, False Claims Act complaints must be pled with particularity,² identifying “the who, what, when, where, and how of an actual false claim” submitted to the government.³ Whistleblowers without evidence of specific claims have tried to circumvent the rule with statistics, showing a likelihood that false... READ MORE