The U.S. Court of Appeals for the Fifth Circuit recently affirmed a district court’s decision to dismiss a False Claims Act action, finding that the hearing requirement for purposes of due process and 31 U.S.C. § 3730 were met. However, the Court declined to adopt a standard for reviewing dismissals under § 3730.
The plaintiff brought qui tam actions on behalf of the U.S. government under the FCA alleging violations of the Anti-Kickback Statute by the defendants. The plaintiff alleged that the defendants provided free product-education services to induce health care providers to prescribe their products. However, the government declined to intervene. The defendants moved to dismiss for failure to state a claim. The magistrate judge held a hearing on those motions, and recommended that the motions be granted and denied in part. The district court adopted those recommendations. After the plaintiff amended its complaint, the United States moved to dismiss pursuant 31 U.S.C. § 3730(c)(2)(A). The magistrate judge held a hearing on the government’s motions and recommended that the motions be granted, and the district court adopted those recommendations and dismissed the actions.
Source:
- Weiner Brodsky Kider PC: 5th Circuit Affirms Dismissal in FCA Action But Declines to Adopt § 3730 Standard
