On March 28, 2023, the U.S. Court of Appeals for the Sixth Circuit affirmed the dismissal of a qui tam action brought under the False Claims Act based on an illegal kickback under the Anti-Kickback Statute. This decision not only curtails the scope of the Anti-Kickback Statute (“AKS”) within the Sixth Circuit by limiting “remuneration” under that statute to “payments and other transfers of value” but also widens the circuit split on the meaning of “items or services resulting from [the] violation” of the AKS to state a claim under the False Claims Act.
The case arose out of somewhat peculiar facts. Oaklawn Hospital extended a tentative employment offer to Dr. Martin to join the hospital as an internal ophthalmologist — a service the hospital previously did not offer. Dr. Martin worked for the only local ophthalmology practice, which was owned by Dr. Hathaway. When Dr. Hathaway got wind of the offer, he told Oaklawn that he would continue to refer patients to Oaklawn if the hospital did not hire Dr. Martin but would be forced to make referrals elsewhere if it did.
Oaklawn ultimately pulled its offer to Dr. Martin, and she brought a qui tam action. Her complaint alleged that Dr. Hathaway and Oaklawn engaged in an illegal kickback scheme under the AKS (continued referrals in exchange for not hiring Dr. Martin) and that any claims for Medicare and Medicaid reimbursement resulting from the kickbacks violated the False Claims Act. After the U.S. District Court for the Western...
NEW YORK, April 27, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP alerts investors in ImmunityBio, Inc. (NASDAQ: IBRX) of a pending securities class action naming a senior executive as an ind...