Originally published in California Society for Healthcare Attorneys – California Health Law News Spring 2025 issue. Posted with permission.
As the new administration implements its “America First” trade policy, healthcare and life sciences companies participating in global supply chains face both increasing costs and elevated risks associated with navigating customs requirements. A series of recent executive actions has imposed new, sweeping tariffs impacting many healthcare suppliers, with anticipated pharma-specific tariffs on the horizon. Each of these new tariff requirements carries with it potential exposure under the False Claims Act (FCA), 31 USC § 3729 et seq.
Healthcare and life sciences companies are no strangers to the FCA. Of the more than $2.9 billion in FCA settlements and judgments reported by the Department of Justice (DOJ) in fiscal year 2024, over $1.67 billion related to matters involving the healthcare industry, including managed care providers, hospitals and other medical facilities, pharmacies, pharmaceutical companies, laboratories, and physicians.
The FCA does not apply to traditional tax-related matters (though those who track California’s False Claims Act (CFCA), Cal. Gov. Code § 12650 et seq., will note that in March 2025, California Attorney General Rob Bonta unveiled legislation that would amend the CFCA to cover tax fraud). However, while tariffs are essentially taxes on goods imported to the United States, tariffs are not treated as...
Norwalk dentist Nazneen Jaffri, DDS, resolved allegations she violated state/federal False Claims Act statutes by illegally paying a “patient recruiting” company. HARTFORD, Conn. — Norwalk dentist ...