4th Circ. Says $45M Tuomey FCA Ruling Flouts Constitution

Law360, New York (April 2, 2012, 3:21 PM EDT) -- The Fourth Circuit on Friday vacated a $45 million False Claims Act judgment against Tuomey Healthcare System Inc. over compensation arrangements with doctors, ruling a district judge violated the company's Seventh Amendment rights by setting aside the jury verdict in the case.

The appeals court said the district court had no standing to order Tuomey to pay the $45 million to the U.S. because it set aside the jury verdict that found Tuomey guilty of violating the Social Security Act's Stark Law, according to Friday's ruling....
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