Articles Posted in US Court of Appeals for the Eighth Circuit

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Relators filed a quit am action against the Hospital for violations of the False Claims Act. Relators also filed suit against the Hospital and its CEO, alleging violation of the Act's anti-retaliation provision. The Eighth Circuit affirmed the district court's grant of the Hospital's motion to dismiss all counts of the complaint and grant of summary judgment as to the retaliation claim. The court held that the complaint alleged a fraudulent scheme without representative examples with the required specificity. Furthermore, the complaint lacked the sufficient indicia of reliability leading to a strong inference that claims were actually submitted. The court also held that claims alleging that defendants made false records or statements were properly dismissed because they failed to connect the false records or statements to any claim made to the government; claims that the Hospital conspired to violate the Anti-Kickback Statute were properly dismissed because the complaint did not include any details about an agreement and relators failed to plead the conspiracy with particularity; claims against the CEO were properly dismissed because the Act did not impose individual liability; and the district court properly granted summary judgment for the Hospital on the remaining claims. View "United States ex rel. Strubbe v. Crawford County Memorial Hospital" on Justia Law

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As long as the relator had direct knowledge of the true state of the facts, she can be an original source even though her knowledge of the misrepresentation was not first-hand. In this case, the Eighth Circuit reversed the district court's dismissal of relator's qui tam action under the False Claims Act, 31 U.S.C. 3729-3733. The district court reasoned that information underlying relator's allegations had been previously disclosed. The court held that the district court misapplied circuit precedent on the meaning of "original source" because relator did not have to have direct and independent knowledge of Bayer's allegedly false communications to the Department of Defense. The district court did not reach other arguments raised by Bayer. Therefore, the court remanded for the district court to address these matters in the first instance. View "Simpson v. Bayer Healthcare" on Justia Law