False Claims Act (FCA) cases, particularly in the government contracts space, often have several defendants; prime contractors, subcontractors, vendors and individuals are all common targets. In healthcare FCA cases, with increasing regularity, multiple parties (hospitals, providers, investors, etc.) appear in the defendant bracket. According to the U.S. Supreme Court, these defendants face joint and several liability for the treble damages permitted under the statute. But what if one or more defendants settles first?
The D.C. Circuit's recent ruling in United States v. Honeywell International Inc. holds a defendant may offset their damages, dollar for dollar, against the settlement amounts paid by other defendants.
This pro tanto approach is markedly different from the "proportionate share" approach, advanced by the government and followed by the district court, under which a defendant is responsible for its proportionate share of the damages, regardless of any amounts paid in prior settlements. According to the government, this approach allows a court to "calibrate a party's punishment to its relative culpability, furthering, at least to some extent, the punitive effect of the [FCA]."
In rejecting the proportionate share approach, the court noted that "the FCA says nothing at all about how to address indivisible harms or whether joint and several liability is appropriate. And a literal reading could suggest that because a person is 'liable' for the damages sustained by...
Health Minister Adonis Georgiadis has condemned as fake a photo circulating online that allegedly depicts him in a “private moment,” warning that anyone claiming the image is authentic will face l...