If you think that ignorance of the law is no excuse, take a look at the Eleventh Circuit’s opinion in US ex rel. Phalp v. Lincare Holdings. It leaves no doubt that in a False Claims Act case, ignorance can be a solid defense. Oxygen supply company Lincare was sued by two former salesmen for violating of the …
Judge Has No Interest in DOJ’s Statement of Interest
May 4, 2017 Leave a Comment
In yet another demonstration of the benefits of lifetime tenure, a federal judge in Florida has told the Department of Justice to take a hike. It happened when the DOJ asked for permission to submit a “statement of interest” in a gigantic False Claims Act case—but only after having declining to intervene in …
The Downside of the Advice-of-Counsel Defense
April 19, 2017 Leave a Comment
Intent is a necessary element of a False Claims Act (FCA) violation. If a defendant reasonably relied on advice of counsel in performing the actions at issue, the intent element is absent. That’s the upside of the advice-of-counsel defense. But there’s a downside, and a recent federal decision in a major …
Jurisdiction to Freeze Assets but Not to Thaw Them
April 5, 2017 Leave a Comment
A recent Fourth Circuit opinion in a False Claims Act case demonstrates that while the government can freeze defendants’ assets before trial with lightning speed, getting them unfrozen can take anywhere from many years to never. In 2014 whistleblowers filed a qui tam action against BlueWave Healthcare …
Government Wants to Settle, Whistleblowers Don’t
March 22, 2017 Leave a Comment
What happens when the government wants to settle a False Claims Act case, but the whistleblowers who filed the case don’t? That was the question before the U.S. District Court for the District of Colorado. Airport hangar owners David Shepard and William Marvel brought a whistleblower case against the …
Far-Fetched Whistleblower Claim of the Month
February 6, 2017 Leave a Comment
The hospital industry is accustomed to far-fetched whistleblower claims: allegations that a hospital knowingly submitted false or fraudulent Medicare or Medicaid claims or fired a whistleblower for trying to prevent such activity. But in terms of far-fetched claims decided in January, whistleblower Jana Endicott …