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Friday, May 1, 2026

Health-Care System's Lawsuit Against Whistleblowers Can Proceed - Bloomberg Law

A now-dismissed whistleblower suit accusing Marietta Area Healthcare Inc. of fraud doesn’t bar the company from suing the whistleblowers for malicious prosecution, tortious interference, and other state law claims, a federal district court said.

Michael King and Todd Kruger in 2016 filed a False Claims Act suit alleging that Marietta violated federal laws governing physician recruitment and compensation and that it submitted inappropriate payment claims to federal health-care programs. The government cleared Marietta of wrongdoing after an investigation, and the whistleblowers voluntarily dismissed their case.

Marietta filed its own suit against the whistlebowers in 2020. The whistleblowers argued their FCA ...

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