Last month, in U.S. ex rel. Drakeford v. Tuomey, No. 13-2219, (4th Cir. July 2, 2015), the Fourth Circuit affirmed a False Claims Act verdict against a nonprofit hospital in Sumter, South Carolina. In an area of the law where cases seldom make it to trial, the Tuomey case generated not one but two trials in over 10 years of protracted litigation, and ultimately resulted in a $237 million verdict against Tuomey. The Fourth Circuit upheld the jury’s damages verdict, rejecting Tuomey’s arguments that an award so large constituted an unconstitutionally excessive fine.

Although the majority of the Fourth Circuit’s decision focused on arguments made by Tuomey regarding its reliance on advice of counsel and whether it had knowingly violated the FCA, that this enormous award was upheld is noteworthy, as it represents the largest FCA fine to be upheld against a constitutional challenge under the Excessive Fines Clause. Indeed, the next-largest challenged award of $64 million in U.S. v. Rogan was multiples smaller.

Originally published in Law360, New York on August 18, 2015.