The final months of 2021 saw a flurry of noteworthy False Claims Act (FCA) activity. Among other developments, appellate courts issued important decisions concerning materiality, the government’s qui tam dismissal authority, and the application of the Eighth Amendment’s Excessive Fines Clause. The fourth quarter also brought news of several significant settlements, including a group of eight- and nine-figure resolutions of alleged Anti-Kickback Statute violations by pharmaceutical manufacturers and the latest example of a private equity firm paying a substantial sum to resolve FCA allegations leveled against one of its portfolio companies.
This post summarizes key developments from the year’s final quarter and identifies important takeaways for healthcare providers and government contractors.
Five years after the Supreme Court’s decision in Universal Health Services v. U.S. ex rel. Escobar, the FCA’s materiality element continues to be a key factor driving the resolution of FCA litigation. The fourth quarter of 2021 was no exception, as circuit courts issued at least two important rulings addressing materiality:
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