Judiciary Committee Approves Amendments to California FCA

On Tuesday, the Judiciary Committee of the California State Assembly passed Assembly Bill 1270, which would make several important changes to the California False Claims Act, most notably eliminating the tax fraud loophole and clarifying materiality and damages standards. At the hearing, Martin Goyette, the head of the California Attorney General’s False Claims Unit, explained that the proposed changes would “strengthen our ability to get money back from people who...

DOJ Affirms its Materiality Provision but Threatens to Dismiss Gilead FCA Case

On November 30, 2018, the United States filed its amicus curiae brief before the Supreme Court in Gilead Sciences, Inc. v. United States ex rel. Campie (“Gilead”). The brief highlights two key topics in False Claims Act (“FCA”) litigation: (1) the interpretation of materiality under Universal Health Services, Inc. v. United States ex rel. Escobar, 136 S. Ct. 19889 (2016) (“Escobar”) and (2) the impact of the January 2018 Granston...

Ninth Circuit Refuses to Kill Incentive Compensation Ban Whistleblower Suit

Last week, the Ninth Circuit refused to kill a False Claims Act lawsuit alleging that San Francisco’s Academy of Art University violated the federal incentive compensation ban. The ban, which falls under Title IV of the Higher Education Act, prohibits schools that receive federal funds from paying incentives to employees for securing enrollments. The ban operates to protect students from pushy recruiters looking to sell students on their school-regardless of...

Constantine Cannon Files Amicus Brief on Behalf of AARP

Constantine Cannon is proud to have partnered with AARP Foundation to represent AARP, AARP Foundation, Center for Medicare Advocacy, Justice in Aging, the National Consumer Voice for Quality Long-Term Care, and the National Health Law Program, as amici curiae in the whistleblower-initiated case of United States ex rel. Angela Ruckh v. Salus Rehabilitation, currently on appeal before the 11th Circuit. The appeal presents an important opportunity for the Court of...

False Claims Act Developments: Sixth Circuit Rules that Timing Matters When It Comes to Certifying Plans of Care

By Leah Judge Reaffirming the importance of patient plans of care, the Sixth Circuit recently held that the timing of a physician’s certification of such plans is material to the government’s decision to pay for home health services. The case marks another circuit court’s application of the materiality standard announced in Universal Health Servs., Inc. v. United States ex rel. Escobar, and serves as a rebuke to recent decisions that...

Supreme Court Considers Revisiting Key FCA Decision

By the C|C Whistleblower Lawyer Team Yesterday, the justices asked the Trump Administration’s Office of the Solicitor General’s views on a petition for certiorari in United States ex rel. Campie v. Gilead Scis., a False Claims Act (FCA) suit against pharmaceutical giant Gilead Sciences. The suit, which was brought by two former Gilead employees turned whistleblowers, alleges the company made false statements about its compliance with relevant FDA regulations related...

Whistleblower News From The Inside -- February 14, 2018

By the C|C Whistleblower Lawyer Team Senator Grassley Speaks on Interpreting the False Claims Act – Yesterday, Senator Chuck Grassley took to the Senate floor to criticize recent judicial decisions that have rigidly applied the False Claims Act’s materiality standard. Senator Grassley stated, “The standard for materiality is actually the same as it has always been. The Court did not change it in Escobar.” Office of Senator Chuck Grassley Police Recommend...

Florida Judge Erases $350M Jury Verdict in FCA Case

By the C|C Whistleblower Lawyer Team Last Thursday, a judge in the Middle District of Florida threw out a $350M jury verdict against a nursing home provider. The basis of the decision was a stringent interpretation of the FCA’s materiality element. The ruling heavily relied upon the 2016 Supreme Court decision in Universal Health Services v. Escobar. This is the latest example of that ruling being hashed out in lower...

Whistleblower News From The Inside -- September 8, 2017

By the C|C Whistleblower Lawyer Team Ex-Amazon analyst pleads guilty to fraud charge -- A former financial analyst at Amazon has pleaded guilty to an insider-trading charge, admitting in court he tipped off a college friend to information about the company’s forthcoming earnings report in spring 2015. Brett D. Kennedy of Blaine resigned from Amazon in May. Prosecutors said that his former fraternity brother at the University of Washington, Maziar...

Ninth Circuit Finds Materiality in the Face of Continued Government Payment

By Rosie Dawn Griffin Earlier this month, the U.S. Court of Appeals for the Ninth Circuit revived United States ex rel. Campie v. Gilead Scis., a False Claims Act (FCA) suit against pharmaceutical giant Gilead Sciences and, in doing so, provided the qui tam bar with additional guidance on how the lower courts will interpret the Supreme Court’s emphasis on materiality in Universal Health Services, Inc. v. United States ex rel. Escobar. The suit, brought...