In a closely watched appeal, the U.S. Court of Appeals for the First Circuit ruled on February 18 that to satisfy the causation requirement in False Claims Act (FCA) actions based on alleged Anti-Kickback Statute (AKS) violations, the government or relator must prove that the alleged kickbacks were the “but-for” cause of the defendant’s allegedly false claims. The First Circuit joins the Sixth and Eighth Circuits in adopting this defendant-favorable standard, with only the Third Circuit requiring a less-stringent showing.Continue Reading First Circuit Adopts “But-For” Causation Standard for Proving Kickback FCA Violations
District Court Finds that $487 Million False Claims Act Judgment Violates Eighth Amendment
On February 8, the U.S. District Court for the District of Minnesota ruled that a $487 million False Claims Act (FCA) damages award entered last year against Precision Lens and its co-founder violated the Eighth Amendment’s prohibition on excessive fines and ordered the judgment reduced by more than half. Continue Reading District Court Finds that $487 Million False Claims Act Judgment Violates Eighth Amendment
False Claims Act Case Unsealed Against Cerebral, Showing Continued Scrutiny of Telehealth Prescriptions
A qui tam False Claims Act (FCA) complaint was recently unsealed against Cerebral, a telehealth startup that provides virtual mental-health therapy, in the U.S. District Court for the Northern District of Iowa. Continue Reading False Claims Act Case Unsealed Against Cerebral, Showing Continued Scrutiny of Telehealth Prescriptions
Government Scrutiny of COVID-19 Relief Funds
We authored an article published in the June 2023 issue of the American Bar Association’s (ABA) Health Lawyer addressing government scrutiny of COVID-19 relief funds. Continue Reading Government Scrutiny of COVID-19 Relief Funds
Government Announces First FCA Settlement with PPP Lender
The Department of Justice (DOJ) announced on September 12, the first-ever False Claims Act (FCA) settlement with a Paycheck Protection Program (PPP) lender.
Continue Reading Government Announces First FCA Settlement with PPP Lender
PPP Enforcement Actions Gather Steam
The Paycheck Protection Program (PPP) was intended to provide a fast influx of assistance to small businesses during the economic shock created by the COVID-19 pandemic. The speed with which loans were distributed to businesses nationwide was striking, and so was the speed with which the Department of Justice (DOJ) began prosecuting those abusing the program. Reports of corporations and individuals seeking to take advantage of the PPP prompted a vigorous law enforcement response that has broadened its scope in recent months. As we highlighted last year, the DOJ has taken aggressive action to pursue those who engaged in misconduct involving the PPP and other CARES Act stimulus programs.
Continue Reading PPP Enforcement Actions Gather Steam
False Claims Act Settlements to Know from Q1 2022
The first quarter of 2022 brought news of several noteworthy False Claims Act (FCA) settlements, including several settlements by physicians regarding arrangements deemed to be unlawful kickbacks and the first settlement under the Department of Justice’s Civil Cyber-Fraud Initiative. This post summarizes key settlements of interest to healthcare providers and government contractors.
Continue Reading False Claims Act Settlements to Know from Q1 2022