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1 month ago | 
fcablog.sidley.com | Scott Stein |Jaime Jones |Joseph R. LoCascio |Lauren McBride
Last year, we reported on a rare district court decision from Minnesota finding application of the FCA’s civil penalties unconstitutionally excessive. Last week, a judge in the Northern District of Texas determined that even the minimum amount in FCA penalties, as applied, would have violated the Eighth Amendment’s Excessive Fines Clause.
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1 month ago | 
lexology.com | Scott Stein |Jaime Jones |Joseph R. LoCascio |Lauren McBride
Last year, we reported on a rare district court decision from Minnesota finding application of the FCA’s civil penalties unconstitutionally excessive. Last week, a judge in the Northern District of Texas determined that even the minimum amount in FCA penalties, as applied, would have violated the Eighth Amendment’s Excessive Fines Clause.
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Jan 21, 2025 | 
fcablog.sidley.com | Jaime Jones |Brenna Jenny |Lauren McBride
Massachusetts recently signed into law House Bill 5159, which includes a strict new rule for investors in Massachusetts health care companies, requiring them to timely disclose FCA violations of their investment entities or face FCA liability themselves. This law imposes FCA liability for a broader range of conduct by investors as compared to the federal False Claims Act, and affected investors should consider whether any operational changes should be made to address the new law.
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Jan 13, 2025 | 
fcablog.sidley.com | Jaime Jones |Brenna Jenny |Lauren McBride
Judge Patti Saris in the District of Massachusetts recently granted a defense motion for summary judgment after concluding that relator failed to show that defendants knowingly submitted medically unnecessary tests or that any false claims were submitted as a result of independent contractor arrangements that allegedly violate the Anti-Kickback Statute (“AKS”). See U.S. ex rel. Omni Healthcare v. MD Spine Solutions, 18-cv-12558 (D. Mass. Jan. 6, 2025).
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Jun 14, 2024 | 
reuters.com | Jaime Jones |Brenna Jenny |Lauren McBride
The Department of Justice (DOJ) logo is pictured on a wall after a news conference in New York December 5, 2013. REUTERS/Carlo Allegri/File Photo June 14, 2024 - Citing the growing influence of private equity firms and other investors on the delivery of health care, the Department of Justice ("DOJ") has turned its sights on health care investors, including through the widely used health care anti-fraud tool, the federal False Claims Act ("FCA").
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Feb 12, 2024 | 
fcablog.sidley.com | Jaime Jones |Scott Stein |Brenna Jenny |Lauren McBride
On Thursday, a Minnesota district court judge more than halved a $490 million False Claims Act jury verdict against an ophthalmology distributor and its founder for Anti-Kickback Statute (“AKS”) violations, to $217 million, holding the damages were “notably severe” and “grossly disproportional” to the offense, and thus improper under the Excessive Fines Clause. The decision is the latest in United States of America ex rel. Fesenmaier v. Cameron-Ehlen Group, Inc. et al., No. 13-cv-3003 (D.
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Feb 12, 2024 | 
lexology.com | Jaime Jones |Scott Stein |Brenna Jenny |Lauren McBride
On Thursday, a Minnesota district court judge more than halved a $490 million False Claims Act jury verdict against an ophthalmology distributor and its founder for Anti-Kickback Statute (“AKS”) violations, to $217 million, holding the damages were “notably severe” and “grossly disproportional” to the offense, and thus improper under the Excessive Fines Clause. The decision is the latest in United States of America ex rel. Fesenmaier v. Cameron-Ehlen Group, Inc. et al., No. 13-cv-3003 (D.
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Jan 24, 2024 | 
fcablog.sidley.com | Jaime Jones |Jon Zucker |Lauren McBride
A recent False Claims Act settlement between the Department of Justice, a New Jersey hospital, and the hospital’s investors also included a novel Federal Debt Collection Practices Act (“FDCPA”) settlement with the investors, highlighting the government’s continued efforts to pursue investors in the healthcare industry.
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Jan 24, 2024 | 
lexology.com | Jaime Jones |Jon Zucker |Lauren McBride
A recent False Claims Act settlement between the Department of Justice, a New Jersey hospital, and the hospital’s investors also included a novel Federal Debt Collection Practices Act (“FDCPA”) settlement with the investors, highlighting the government’s continued efforts to pursue investors in the healthcare industry.
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Dec 11, 2023 | 
fcablog.sidley.com | Jaime Jones |Brenna Jenny |Lauren McBride
A recent decision from the District of Minnesota applying the Eighth Circuit’s new but-for causation requirement for connecting violations of the Anti-Kickback Statute (AKS) to FCA violations emphasizes the importance of the circuit split over the correct causation standard, while also highlighting challenges defendants can face post-Supervalu, particularly at the motion to dismiss stage, when arguing that their intent was inconsistent with the FCA’s scienter element. See United States ex rel.
