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Investigations Newsletter: Federal Judge Affirms $487 Million Judgment Against Medical Device Distributor for FCA Violations

Federal Judge Affirms $487 Million Judgment Against Medical Device Distributor for FCA Violations - On May 12, 2023, US District Judge Wilhelmina M. Wright of the District of Minnesota affirmed the entry of a $487 million...more

Investigations Newsletter: Nurse Pleads Guilty to Health Care Fraud, Distributing Controlled Substances

Nurse Pleads Guilty to Health Care Fraud, Distributing Controlled Substances - On May 9, 2023, an advanced practice registered nurse pleaded guilty to unlawfully distributing controlled substances and committing health...more

Investigations Newsletter: Recent Interview With FCA Plaintiff Bar Attorneys Offers Key Insight into Trends in Anti-Kickback...

Recent Interview With FCA Plaintiff Bar Attorneys Offers Key Insight into Trends in Anti-Kickback Litigation - During a recent interview commemorating the 50th anniversary of the enactment of the Anti-Kickback Statute, two...more

Investigations Newsletter: Anticipated Landmark Supreme Court Decision May Be Anything But

Anticipated Landmark Supreme Court Decision May Be Anything But On - April 18, 2023, the US Supreme Court heard oral arguments in a set of highly anticipated cases regarding the scienter—or knowledge—provision of the False...more

Investigations Newsletter: Two Men Sentenced for $1.6 Million COVID-19 Fraud Scheme

Two Men Sentenced for $1.6 Million COVID-19 Fraud Scheme - On Monday, April 10, two brothers were sentenced for their participation in a COVID-19 fraud scheme. The scheme involved fraudulent applications for $1.6 million...more

Investigations Newsletter: Supreme Court to Hear US Government in FCA Scienter Oral Argument

Supreme Court to Hear US Government in FCA Scienter Oral Argument - On March 20, 2023, the US Supreme Court agreed to allow the federal government to participate in oral argument in the Supreme Court’s review of the...more

Investigations Newsletter: DOJ Files FCA Complaint Against Major Pharmacy Retailer Based on Alleged Violations of Controlled...

DOJ Files FCA Complaint Against Major Pharmacy Retailer Based on Alleged Violations of Controlled Substances Act - On March 13, 2023, the Department of Justice (DOJ) announced that it filed a complaint in intervention...more

Investigations Newsletter: SCOTUS Denies Cert In Cases Addressing FCA Pleadings Requirements

SCOTUS Denies Cert In Cases Addressing FCA Pleadings Requirements - On Monday, October 17, 2022, the US Supreme Court rejected three petitions asking the Court to resolve a circuit split regarding the Rule 9(b)...more

Investigations Newsletter: OIG Warns That Proposed Drug Discounts May Warrant Sanctions

OIG Warns That Proposed Drug Discounts May Warrant Sanctions - On October 5, the US Department of Health and Human Services’ Office of Inspector General (OIG) issued an advisory opinion assessing a proposal that involved...more

Investigations Newsletter: DC Circuit Adopts Pro Tanto Approach to False Claims Act Settlement Offsets

DC Circuit Adopts Pro Tanto Approach to False Claims Act Settlement Offsets - In an opinion issued on August 30, 2022, the US Court of Appeals for the DC Circuit held in United States v. Honeywell International, Inc., ---...more

Investigations Newsletter: Lens Manufacturer Agrees To Pay $16.4 Million To Resolve Alleged Violations of the False Claims Act and...

Lens Manufacturer Agrees To Pay $16.4 Million To Resolve Alleged Violations of the False Claims Act and Anti-Kickback Statute - Essilor International, Essilor of America, Inc., Essilor Laboratories of America Inc., and...more

Investigations Newsletter: Ramesh “Sunny” Balwani, Former Theranos President and COO, Found Guilty on All Twelve Fraud Counts in...

Ramesh “Sunny” Balwani, Former Theranos President and COO, Found Guilty on All Twelve Fraud Counts in High-Profile Trial - On July 7, 2022, a federal jury in the Northern District of California found Ramesh “Sunny”...more

Investigations Newsletter: SCOTUS Raises the Bar for Proof of Intent Under the Controlled Substances Act

SCOTUS Raises the Bar for Proof of Intent Under the Controlled Substances Act - This week, the US Supreme Court issued a ruling in Ruan v. United States requiring subjective intent of wrongdoing in order to convict...more

DC Circuit Narrowly Interprets False Claims Act’s “Government-Action Bar”

On May 17, 2022, the US Court of Appeals for the DC Circuit issued an opinion in a False Claims Act suit, narrowly interpreting the so-called “government-action bar.” The government-action bar, 31 USC § 3730(e)(3), forecloses...more

Federal Contractors Beware: Firm-Fixed-Price Contract Negotiations & FCA Liability

Federal Contractors Beware: Sixth Circuit Recognizes False Claims Act Exposure Based on Allegedly Inflated Labor Cost Estimates Leading To Firm-Fixed-Price Contract. On May 16, 2022, the US Court of Appeals for the Sixth...more

Investigations Newsletter: DOJ and SEC Bring Charges Against Executive in Alleged $62 Million Global Crypto Investment Fraud...

DOJ and SEC Bring Charges Against Executive in Alleged $62 Million Global Crypto Investment Fraud Scheme - On May 6, 2022, the Department of Justice (DOJ) announced that a federal district court in the Southern District of...more

Investigations Newsletter: Hearing Aid Company Agrees To Pay $34.37 Million To Settle Claims That It Submitted False Claims to the...

Hearing Aid Company Agrees To Pay $34.37 Million To Settle Claims That It Submitted False Claims to the Federal Employees Health Benefits Program - On Friday, April 29th, DOJ announced a $34.37 million settlement with...more

Investigations Newsletter: DOJ and Treasury Announce Multilateral Russian Oligarch Task Force Called “REPO” 

DOJ and Treasury Announce Multilateral Russian Oligarch Task Force Called “REPO” - On March 16, 2022, Attorney General Merrick Garland and Secretary of the Treasury Janet Yellen met with representatives from Australia,...more

Investigations Newsletter: DOJ Civil Cyber-fraud Initiative Obtains First Settlement 

Headlines that Matter for Companies and Executives in Regulated Industries. DOJ Civil Cyber-fraud Initiative Obtains First Settlement - The Department of Justice announced on Tuesday, March 8th, that Comprehensive...more

DOJ Notches Key Win for Civil Cyber-Fraud Initiative: Court Holds That Cyber Security Compliance May Be Material Under the False...

On February 1, 2022, a federal court in California issued the first major ruling in a False Claims Act case testing the Department of Justice’s newly minted Civil Cyber-Fraud Initiative, notching a win for the government. In...more

Court Approves Novel "Shadow Trading" Theory in SEC Insider-Trading Case

On January 14, 2022, a federal court in the Northern District of California endorsed the SEC's novel "shadow trading" theory of insider trading. In SEC v. Panuwat, No. 3:21-cv-06322-WHO (N.D. Cal. Jan. 14, 2022), the Court...more

Investigations Newsletter: Lab Owner Pleads Guilty to $6.9 Million Medicare Fraud Scheme Involving Kickbacks and Bribery

Lab Owner Pleads Guilty to $6.9 Million Medicare Fraud Scheme Involving Kickbacks and Bribery - On January 13, 2022, the Department of Justice (DOJ) announced that a Florida man pled guilty in the Southern District of...more

Investigations Newsletter: Sixth Circuit Rules That Statute of Limitations for FCA Retaliation Claims Is Triggered by Decision To...

Sixth Circuit Rules That Statute of Limitations for FCA Retaliation Claims Is Triggered by Decision To Terminate, Not Notice of Termination - On Wednesday, January 12, 2022, the Sixth Circuit held in El-Khalil v. Oakwood...more

Third Circuit Distinguishes "Bad Acts" From "Crimes" In Reversing False Statements Conviction for Lack of Materiality

The concept of materiality is critical in criminal fraud and false statement cases, as well as civil fraud cases, because it is what distinguishes harmless misrepresentations from consequential ones. A misrepresentation is...more

12/3/2021  /  False Statements , Prior Bad Acts

Investigations Newsletter: DOJ Files Complaint in AWP False Claims Act Suit Against Pharmaceutical Ingredient Seller 

DOJ Files Complaint in AWP False Claims Act Suit Against Pharmaceutical Ingredient Seller - On November 8, 2021, the Department of Justice (DOJ) announced that it intervened in a qui tam suit and filed a False Claims Act...more

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