In This Issue:

- Move over Big Pharma: Health care is not the only industry susceptible to False Claims Act scrutiny

- Third Circuit affirms dismissal of False Claims Act suit, citing contract ambiguity

- False claims by any other name: Medtronic and Omnicare cases illustrate the interplay between the False Claims Act and other federal laws regulating commerce with Medicare and Medicaid

- Excerpt from Move over Big Pharma: Health care is not the only industry susceptible to False Claims Act scrutiny:

The company (formerly known as Computer Associates International, Inc. or CA, Inc.) (“CA”) had contracted with the U.S. General Services Administration (“GSA”) to provide software licenses, software maintenance, and consulting services to executive agencies including the Department of Defense; Department of Energy; Department of Health and Human Services; Department of Treasury; Department of Labor; and Department of Veterans Affairs. The GSA negotiated the contract terms, which included maximum prices and price monitoring mechanisms to ensure that the government receives prices and discounts at the same rate as commercial customers. The GSA signed an agreement with CA (the “2002 Multiple Award Contract”) in which CA promised to provide the government with prices and discounts that were the same as, or lower than, those given to commercial customers. Pursuant to the 2002 Multiple Award Contract, discounts and pricing were to be disclosed so that GSA could negotiate the best prices for its customer agencies. In a “Price Reductions Clause,” GSA promised to provide quarterly updates and adjustments if necessary.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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