There are multiple components to the risk defendants must consider when faced with going to trial for a matter involving the False Claims Act (FCA). Setting aside the incalculable impact that litigation can have on business operations, the statute itself anticipates repayment of the proven overpayment, treble damages, and exposure to a civil statutory penalty equal to a range between $13,508 and $27,018 per false claim. Combined, the trebling effect of a jury award plus the draconian statutory penalties in FCA matters could create an existential crisis for a defendant that opts to take an FCA matter to trial and then loses.
This is the reality for a medical company in Minnesota. In United States of America, ex rel. Kipp Fesenmaier v. The Cameron-Ehlen Group, Inc., Dba Precision Lens, and Paul Ehlen, Civ. No. 13-3003, the government alleged that an ophthalmology distributor and its founder violated the FCA by providing kickbacks to physicians in the form of travel and entertainment activities, encouraging the use of the company’s ophthalmic supplies and equipment. These offers of payment and incentives, according to a Minnesota jury, violated the Anti-Kickback Statute and material conditions of participation in federal health care programs. A jury found the defendants to have submitted false claims for payment to Medicare, Medicaid, and other federally funded health care programs. Ultimately, on February 27, 2023, a jury found that this conduct led to the submission of ...
By RealWV Staff, WHITE SULPHUR SPRINGS, WV – In a revised court filing yesterday, as first reported by Brad McElhinny with WV MetroNews, The Greenbrier Hotel’s ownership leveled charges that Omni...