Shepherd, Finkelman, Miller & Shah, LLP
Shepherd, Finkelman, Miller & Shah, LLP
866-540-5505 877-891-9880

Dedicated Client Advocacy

June 2017 Archives

PA Doctors Motion for Summary Judgment after Third Circuit Ruling

The False Claims Act ("FCA") requires a materiality to establish a claim for liability, and defines "material" as a natural tendency or capability to influence a bribe. Earlier this year, the Third Circuit applied a stricter materiality standard in United States ex rel. Petratos v. Genentech Inc. ("Petratos"), 855 F.3d 481 (3d Cir. 2017). The Third Circuit ruled that plaintiffs failed to show that the defendant's alleged noncompliance with the Food and Drug Act ("FDA") regulations had an impact on the government's payment decisions, and thus, the alleged conduct was not materially noncompliant. The Court noted that, after the plaintiffs disclosed the defendant's alleged "campaign of disinformation" toward the FDA, the FDA still maintained its approval of the defendant's drug, Avastin, which was at the center of the dispute. Additionally, the government did not stop reimbursement payments for prescriptions of the drug.

FCA Suit Against HealthMarkets Dismissed

U.S. District Judge Mary S. Scriven dismissed a suit brought against HealthMarkets Inc. ("HealthMarkets" or the "Company") by an anonymous whistleblower ("John Doe" or "Doe") on May 23, 2017, after the federal government declined to intervene and John Doe dropped the suit.