FCA's Scope Widens As 8th Circ. Embraces Little-Used Theory

Law360, New York (October 17, 2013, 6:25 PM ET) -- The Eighth Circuit this week endorsed a controversial fraud theory potentially allowing the federal government to recoup every payment it makes to drugmakers and other contractors if they engage in misleading conduct, strengthening an increasingly popular False Claims Act argument and putting many millions more dollars in play, experts say.

In the whistleblower suit targeting Bayer AG, former marketing staffer Laurie Simpson accuses her ex-employer of downplaying the potential for cholesterol drug Baycol to seriously damage muscle fibers. That deception led the U.S. Department of Defense...
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