Billions of dollars at stake as high court takes up central tenets of the FCA.
KEY TAKEAWAYS
The high court's ruling is expected to have a profound effect on whistleblower suits, as it could prove harder to demonstrate that defendants knowingly broke the law, and would be subject to triple damages.
AHA, AHIP, AMA, PhRMA, the U.S. Chamber of Commerce, biotech companies, defense contractors and other business lobbies, are urging the high court to uphold the 7th Circuit Court ruling.
DOJ, the U.S. Solicitor General, the National Whistleblower Center, U.S. Sen. Chuck Grassley (R-IA), and Taxpayers Against Fraud Education Fund are among the lobbies urging SCOTUS to overturn the ruling.
In a rare, if not unprecedented, display of unity, the nation's largest payer, provider, medical device, and drug lobbies are aligned and urging the U.S. Supreme Court to uphold an appeals court's rulings that critics argue will defang the whistleblower penalties in the False Claims Act.
The high court on April 18 will hear arguments in the combined appeals of United States v. Supervalu Inc. and v. Safeway Inc., the main arguments for which SCOTUSblog describes as "whether and when a defendant's contemporaneous subjective understanding or beliefs about the lawfulness of its conduct are relevant to whether it 'knowingly' violated the False Claims Act."
In both cases, the whistleblowers alleged that the retail chains knowingly overcharged Medicare and Medicaid for the cost of prescription drugs...
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