On August 25, 2014, the District Court for the District of Columbia dismissed a claim brought by a former employee of Fannie Mae alleging violations of the anti-retaliation provisions of the Sarbanes-Oxley Act and the Dodd-Frank Act.
Proskauer Obtains Dismissal of High-Stakes False Claims Act Suit
On August 7, 2014, Judge Castel of the Southern District of New York dismissed a False Claims Act (“FCA”) complaint that was based primarily on allegations that the defendant Hospital improperly focused on referral revenue in its physician compensation decisions. The Court insisted that an FCA complaint must set forth specific facts supporting the allegations regarding the impropriety of the payments and at least representative actual claims submitted.
Agencies Issue Final Rule on the Recovery of Contractor Whistleblower Legal Costs
Today, the Department of Defense, General Services Administration, and National Aeronautics and Space Administration issued a final rule that establishes when government contractors and subcontractors may recover legal costs incurred in defending against whistleblower retaliation lawsuits. Generally, the rule prohibits a contractor from billing the government for the costs of
Texas Federal Court Dismisses FCA Claims As Insufficiently Pled
In U.S. ex rel. Williams v. McKesson Corp., No. 3:12-CV-0371-B (N.D. Tex. July 9, 2014), a Texas federal court recently dismissed a qui tam whistleblower suit by a former employee of McKesson, a Texas-based entity that provides billing-related services to the health care industry, holding that the former employee failed to establish “the existence of a false or fraudulent claim submitted to the government for payment.”
Fifth Circuit: FCA Inapplicable to Claims Involving Private Funds Administered by Government-Created Programs
In United States of America ex rel Rene Shupe v. Cisco Systems, Inc. and Avnet, Inc., No. 13-40807 (5th Cir. July 7, 2014), the Fifth Circuit reversed a district court’s order denying a motion to dismiss a qui tam whistleblower suit, holding that the False Claims Act does not apply
Third Circuit Adopts Less Demanding FCA Pleading Standard
Last week, the Third Circuit reversed a New Jersey district court’s decision to dismiss a False Claims Act (FCA) qui tam law suit, holding that the court applied an overly demanding pleading standard to relator Thomas Foglia’s complaint. The Third Circuit’s decision joins the growing debate that has split the
Second Circuit Dismisses $50 Million FCA Suit
Last week, the United States Court of Appeals for the Second Circuit affirmed the dismissal of a False Claims Act (“FCA”) whistleblower suit seeking $50 million in damages from Huron Consulting Group Inc. (“Huron”) for alleged fraudulent billing practices. The case is one of many FCA suits around the country
First Circuit Rules on Scope of FCA First-to-File Rule in U.S. v. Bristol Myers Squibb, Inc.
The First Circuit ruled last week that an earlier-filed False Claims Act complaint will preclude a later-filed complaint if it arises out of the same underlying facts, even if the allegations are not identical.
The case concerns claims by two relators asserting claims against Bristol-Myers Squibb, Inc. (“BMS”) and Sanofi-Aventis
Department of Defense Adopts Final Rule Implementing Whistleblower Amendments
The Department of Defense (DoD) recently adopted a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS). The rule implements increased whistleblower protections for contractor and subcontractor employees from Section 827 of the National Defense Authorization Act for Fiscal Year 2013.
The rule broadens and clarifies whistleblower protections for
Proskauer Offers Webinar On Whistleblowing And Retaliation Issues
Please join us on Tuesday, February 25 for a Webinar addressing the many significant developments in 2013 in federal and state whistleblower legislation and litigation, with a particular emphasis on Sarbanes-Oxley (SOX) and False Claims Act (FCA) developments. Our speakers will also offer practical advice to employers regarding preparing for