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Expert Analysis

7th Circ. Limits FCA 'Worthless Services' Theory

Law360, New York (September 10, 2014, 10:23 AM EDT) -- On Aug. 20, 2014, the Seventh Circuit struck another blow against relators' and the federal government's increasingly aggressive False Claims Act theories of liability. Rejecting the relators' use of the "worthless services" theory, the court in United States ex rel. Absher v. Momence Meadows Nursing Center Inc., Nos. 13-1886 & 13-1936 (7th Cir. Aug. 20, 2014) overturned a $9 million jury verdict and cast doubt on the efforts to pursue similar cases in which a business allegedly provides services of diminished, but still some, value....

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