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Monday, June 22, 2026

FALSE CLAIMS ACT—D.N.J.: No legal authority for claim that nonprofits are immune from AKS violations - VitalLaw.com

Motion for Reconsideration denied where it offered no new factual or legal issue that the court may have overlooked, and which could have resulted in a different conclusion as to the AKS element of remuneration.

A federal District Court in New Jersey has denied the Motion for Reconsideration filed by Visiting Nurse Association of Central Jersey Home Health Group, Inc., and Cape Visiting Nurse Association Inc., in a False Claims Act (FCA) lawsuit brought by a Relator who claimed that the parties violated the Anti-Kickback Statute (AKS) by way of illegal referrals. The court had previously denied the Motion to Dismiss (MTD) where the element of remuneration was challenged, and the current motion did not bring any new factual or legal issue before the court that might have been previously overlooked. Furthermore, it was not proper for the court to consider an argument raised for the first time in the reply brief in support of the MTD (United States of America and the State of New Jersey ex rel. Freedman v. Bayada Home Health Care, Inc., No. 1:17-cv-06267-ESK-AMD, (D.N.J. May 14, 2026)).

Alleged kickback scheme. The Relator’s Complaint alleged that Visiting Nurse Association of Central Jersey Home Health Group, Inc. (Visiting Nurses) and Cape Visiting Nurse Association Inc.’s (Cape VNA) (collectively Visiting Nurse Movants) had an arrangement structured as follows: Visiting Nurses provided Cape Regional Medical Center, Inc. (Cape Regional) with 50 percent equity in the joint...



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