On March 25, 2025, the U.S. Department of Justice (DOJ) announced an $8.1 million settlement in a civil case under the False Claims Act (FCA) related to alleged customs evasion by a California importer of wood flooring. The private whistleblower who reported the conduct received over $1.2 million in the matter. As we suggested in
Causation
First Circuit Adopts “But-For” Causation Standard for Proving Kickback FCA Violations
By Hannah Choate, Brian Irving & Brian Roark on
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
Growing Divide for Causation Standard Under the Anti-Kickback Statute
By Denise Barnes & Gabrielle Degelia on
Posted in Anti-Kickback Statute, Causation
We recently authored an article for The Federal Lawyer exploring the causation standard under the Anti-Kickback Statute (AKS) and the increasing difference between the circuit courts’ interpretation of this standard. “At its core, the question is whether evidence of kickbacks sullies the entirety of the claims related to that transgressor, or whether the government must demonstrate more,” we explained.Continue Reading Growing Divide for Causation Standard Under the Anti-Kickback Statute
Causation Split: First Circuit Pauses Teva Appeal; Regeneron Appeal Going Forward
By Brian Irving on
False Claims Act (FCA) practitioners have been closely watching cases in which courts address the causation requirement in FCA actions based on Anti-Kickback Statute (AKS) violations. Continue Reading Causation Split: First Circuit Pauses Teva Appeal; Regeneron Appeal Going Forward
Seventh Circuit Upholds FCA Judgment Against Constitutional Challenge, Avoids Causation Circuit Split
By Bass, Berry & Sims on
On May 2, the U.S. Court of Appeals for the Seventh Circuit affirmed a False Claims Act (FCA) trial verdict in part, holding that the judgment was not constitutionally excessive under the Eighth Amendment. Continue Reading Seventh Circuit Upholds FCA Judgment Against Constitutional Challenge, Avoids Causation Circuit Split
False Claims Act Case Unsealed Against Cerebral, Showing Continued Scrutiny of Telehealth Prescriptions
By Hannah Choate, Brian Irving & Bass, Berry & Sims on
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
District Courts Wrestle with Causation in Kickback Cases While Circuit Courts Remain Divided
By Scott Gallisdorfer on
Two Massachusetts federal district courts recently addressed—and disagreed about—an important False Claims Act (FCA) issue that has also divided the federal circuit courts: when an alleged FCA violation is based on an underlying violation of the Anti-Kickback Statute (AKS), what kind of causal link must the government or a relator show between the alleged AKS violation and the allegedly false claim for payment?
Continue Reading District Courts Wrestle with Causation in Kickback Cases While Circuit Courts Remain Divided
Sixth Circuit Reins In Anti-Kickback Statute
By Brian Roark & Brian Irving on
On March 28, the Sixth Circuit issued an important decision on the meanings of “remuneration” and “causation” under the Anti-Kickback Statute (AKS), holding that remuneration “covers just payments and other transfers of value” and not “any act that may be valuable to another,” and that to establish False Claims Act (FCA) liability based on AKS violations, a relator or the government must prove a causal link between the alleged kickback scheme and the alleged false claim. Continue Reading Sixth Circuit Reins In Anti-Kickback Statute
False Claims Act Fundamentals: Elements of the False Claims Act
By Molly Ruberg on
The False Claims Act, 31 U.S.C. § 3729, et seq. is the federal government’s primary and most effective tool for fighting fraud. This post provides an overview of the elements that plaintiffs must satisfy to establish liability under the False Claims Act and common defenses related to the elements.
Continue Reading False Claims Act Fundamentals: Elements of the False Claims Act
Eleventh Circuit Reinstates Massive FCA Judgment in Ruckh
By Bass, Berry & Sims on
The roller coaster ride of U.S. ex rel. Ruckh v. Genoa Healthcare, LLC continues. In a previous post, we wrote about the staggering $348 million judgment entered following a jury verdict against a management company and skilled nursing facilities (SNFs) owned by Consulate Health Care. The jury found the defendants committed False Claims Act (FCA) violations by artificially inflating Resource Utility Group (RUG) levels for Medicare therapy patients and falsely certifying that the SNFs had created timely and adequate patient care plans required by Medicaid. Following the judgment, defendants filed a motion for judgment as a matter of law under Federal Rule of Civil Procedure 50(b), and as we noted here, the district court judge took the extraordinary step of overturning the judgment on materiality grounds.
In the latest turn, the Eleventh Circuit reversed the district court’s decision in part and reinstated most of the jury verdict. While the district court, in applying Escobar’s materiality standard, had found “an entire absence of evidence” of materiality, the Eleventh Circuit reached the opposite conclusion, holding that “plain and obvious” evidence of materiality supported a jury verdict of $85 million in single damages. The appellate court ordered the district court to enter judgment in treble that amount, plus per-claim statutory penalties under the FCA. That comes to over $255 million.Continue Reading Eleventh Circuit Reinstates Massive FCA Judgment in Ruckh