dcsimg False Claims and Qui Tam

False Claims and Qui Tam

Companies that do business with federal and state governments sometimes become the targets of civil allegations that they submitted false claims for payment to the government. The federal False Claims Act and its state equivalents were designed to combat fraud against the government, and designed as an enforcement mechanism to empower private individuals with knowledge of fraud against the government to file qui tam actions on the government’s behalf.

While false claims litigation varies widely in subject matter and theory, typical claims include allegations that a contractor mischarged the government for goods and services, fraudulently induced a government contract, or falsely certified compliance with regulatory requirements. The incentive offered to qui tam plaintiffs is a percentage of any recovery the government makes, which can include hefty civil penalties and treble damages.

Our GRCI attorneys have extensive experience defending qui tam actions across a broad range of industries that do business directly with the government or participate in government-funded programs. These include government contractors, defense contractors, oil and gas companies, transportation companies, hospitals, healthcare providers, pharmaceutical companies, and financial services companies. The majority of federal qui tam actions relate to alleged healthcare and procurement fraud, both of which are fields in which McGuireWoods has significant litigation experience.

We have extensive experience in all phases of qui tam litigation. For example, one of the crucial moments in any qui tam case is when the government decides whether or not to intervene. In cases where the government declines to intervene, then less than 10 percent of federal qui tam cases result in a recovery to the government. The median recovery is significantly smaller than cases where the government conducts the litigation itself.

While qui tam actions are filed under seal, companies will often learn of the case prior to the government’s election whether or not to intervene. This presents companies with an important advocacy opportunity at an early stage in the litigation, potentially including a presentation to the government explaining why it should not intervene. We have had significant success in not only making precisely this type of presentation to the government, but also in preventing government intervention.

Our team includes former federal prosecutors, and experienced civil and white collar criminal litigators with experience in this unique area of law. We also tap attorneys from the firm’s other practice groups and our subsidiary McGuireWoods Consulting LLC, when it is beneficial for clients.

CONTACTS

Howard C. Vick Jr. Partner T: +1 804 775 4340
J. Patrick Rowan Partner T: +1 202 857 1758
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RESULTS DEPEND ON A VARIETY OF FACTORS UNIQUE TO EACH CASE. PRIOR RESULTS DO NOT GUARANTEE OR PREDICT A SIMILAR OUTCOME.

Representative Matter

JPMorgan Chase and subsidiaries

Representation of JPMorgan Chase in United States ex rel. Jones v. Collegiate Funding Services, Inc., et al., (E.D.Va.), a FCA qui tam suit seeking hundreds of millions of dollars from JPMorgan Chase and several subsidiaries operating under the name Collegiate Funding Services. JPMorgan Chase and Collegiate Funding Services moved to dismiss the relators’ claims on multiple grounds, including lack of subject matter jurisdiction and failure to plead fraud with particularity. United States District Judge Henry E. Hudson issued a 43-page opinion dismissing the complaint on both grounds. On a question of first impression, Judge Hudson held that disclosures made in a publicly traded company’s filings with the SEC qualify as “administrative reports” that are sufficient to trigger the FCA’s jurisdictional bar. The case is currently on appeal in the U.S. Circuit Court of Appeals for the Fourth Circuit.
Representative Matter

Publicly traded company

Representation of publicly traded company which provided pharmaceuticals and pharmaceutical services to government institutions in federal and state investigation into allegations of improper pricing and billing.
Representative Matter

Largest private operator of healthcare facilities

Representation of the largest private operator of healthcare facilities in the world in defense of allegations by a qui tam plaintiff that a hospital operated by the company had fraudulently billed Medicare and Medicaid for unnecessary, medical procedures performed by a doctor with privileges at the hospital. Our lawyers obtained a dismissal for our client that was upheld by the U.S. Circuit Court of Appeals for the Fourth Circuit.
Representative Matter

Former owners of a pharmacy company

Representation of the former owners of pharmacy company in a joint federal and state FCA investigation and federal criminal investigation related to allegations of improper provision of pharmaceuticals to nursing home patients and illegal kickbacks in connection with customer contracts and sale of business.
Representative Matter

Medical school

Representation of a medical school in a federal FCA investigation relating to billing for services of residents. On behalf of our client, we avoided government intervention, obtained dismissal of the qui tam case in federal court and secured dismissal of a related suit filed as class action in state court.
Representative Matter

Telemedicine provider

Representation of a telemedicine provider in a qui tam case investigated by federal government based on alleged incorrect billing of services provided to Medicare patients.
Representative Matter

global paper and packaging company

Defense of a global paper and packaging company in False Claims Act claims. Won a motion to dismiss in a qui tam suit under the False Claims Act in the Eastern District of Virginia. The relator appealed the dismissal to the Fourth Circuit. The case has been fully briefed, and we are waiting to hear whether there will be oral argument.
Representative Matter

Physician group

Represent physician group in ongoing federal False Claims Act investigation and related civil litigation related to allegations of illegal kickback and referral arrangements, including issues regarding physician arrangements with suppliers of durable medical equipment and relationship with hospital.
Results 1-8 of 8
Franklin D Annand Franklin D. Annand
Associate
2001 K Street N.W.
Suite 400
Washington, DC 20006-1040

T: +1 202 857 1755
F: +1 202 857 2959
vCard
Maurice A Bellan Maurice A. Bellan
Partner
2001 K Street N.W.
Suite 400
Washington, DC 20006-1040

T: +1 202 857 2400
F: +1 202 828 2981
vCard
Alex J Brackett Alex J. Brackett
Partner
One James Center
901 East Cary Street
Richmond, VA 23219-4030

T: +1 804 775 4749
F: +1 804 698 2089
vCard
Jeremy S Byrum Jeremy S. Byrum
Partner
One James Center
901 East Cary Street
Richmond, VA 23219-4030

T: +1 804 775 4305
F: +1 804 698 2080
vCard
C. Simon Davidson C. Simon Davidson
Counsel
One James Center
901 East Cary Street
Richmond, VA 23219-4030

T: +1 804 775 1059
F: +1 804 698 2256
vCard
Christina M Egan Christina M. Egan
Partner
77 West Wacker Drive
Suite 4100
Chicago, IL 60601-1818

T: +1 312 750 8644
F: +1 312 698 4502
vCard
Jeffrey E Rogers Jeffrey E. Rogers
Partner
77 West Wacker Drive
Suite 4100
Chicago, IL 60601-1818

T: +1 312 750 8686
F: +1 312 558 4385
vCard
J. Patrick Rowan J. Patrick Rowan
Partner
2001 K Street N.W.
Suite 400
Washington, DC 20006-1040

T: +1 202 857 1758
F: +1 202 828 3304
vCard
Howard C Vick Jr. Howard C. Vick Jr.
Partner
One James Center
901 East Cary Street
Richmond, VA 23219-4030

T: +1 804 775 4340
F: +1 804 698 2247
vCard
Results 1-2 of 2
Article

Whistleblowers Cash in on False Claims Act

National Defence (NDIA)
July 2014
Results 1-2 of 2