On November 30, 2022, the United States Court of Appeals for the Third Circuit revived a quality control manager’s FCA retaliation claim in United States ex rel. Ascolese v. Shoemaker Constr. Co., — F.4th —, 2022 WL 17335121 (3d Cir. 2022).
The Third Circuit’s precedential opinion addressed for the first time how Congress’s 2009 and 2010 amendments affect the False Claims Act’s retaliation standard.
Takeaway: The Eastern District of New York rules that the tax code gives relator’s counsel superpriority to False Claims settlement proceeds.
The United States government has four primary whistleblower statutes and reward programs:
- The Federal False Claims Act (“FCA”)
- The Securities and Exchange Commission (“SEC”) Whistleblower Program
- The Internal Revenue Service (“IRS”) Whistleblower Program
- The Commodity Futures Trading Commission (“CFTC”) Whistleblower Program
All of these whistleblower programs are quite democratic.
Takeaway: Recent qui tam settlement highlights the DOJ’s continued focus on fraud and abuse in the diagnostics industry and robust enforcement of the Anti-Kickback Statute.
Earlier this month, Snap Diagnostics LLC and two of its executives entered into a nearly $4 million settlement with the United States to settle two qui tam lawsuits.
Takeaway: California has recovered over $2 billion under the State’s False Claims Act since 2001, according to data obtained from the State Attorney General’s Office.
Enacted in 1987, the California False Claims Act (“CAFCA”) is one of the oldest qui tam statutes in the country.
Takeaway: 6th Circuit provided a path forward for a common defense contracting fraud allegation.
In United States ex rel. USN4U, LLC v. Wolf Creek Federal Services[1] the 6th Circuit overturned the lower courts dismissal of a qui tam complaint that alleged a NASA contractor knowingly inflated the prices of its labor costs in Cost Estimates for fixed price contracts.
Takeaways:
- Stock promoters have moved from boiler rooms and stock newsletters to social media services.
- The COVID-19 pandemic and the “meme stock” mania that accompanied it brought an influx of retail traders to public markets.
- Those retail investors have proven to be prime fodder for social media stock promoters.
Takeaway: Over ten years, the Maryland False Health Claims Act has returned $160M to the State. This Digest summarizes each of the 173 matters reported under the Act from 2011 through 2021.
Background of the Act
Maryland is one of 32 states with its own qui tam statute.
Takeaway: From 2018 to 2020, the New York False Claims Act yielded an impressive $216,936,354 in recoveries and returned $130,161,812 to New York State’s Medicaid Program.
New York is one of 32 states with its own qui tam statute.
In Insinga v. Commissioner of Internal Rev. Service, 9011-13W, 2021 WL 4983084 (U.S. Tax Ct. Oct. 27, 2021), the United States Tax Court recently tackled an issue of first impression: whether an IRS whistleblower’s claim may survive death such that the claim may be pursued by his or her estate in the U.S.
