Analysis

3rd-Party Funding Ruling Opens Door For FCA Case Flood

Law360 (July 27, 2020, 10:10 PM EDT) -- An unprecedented decision backing a whistleblower's use of third-party legal funding in a Medicare billing suit has raised concerns that future False Claims Act lawsuits may be motivated more by corporate strategy than protecting the government against fraud.

The first-of-its-kind June decision from the Eleventh Circuit revived relator Angela Ruckh's Medicare fraud judgment against nursing facility operator CMC II LLC despite the company's objections to Ruckh's appeal being funded by a third party, sparking considerable debate over the propriety of such funding for FCA cases.

While the bankrolling of cases by outside parties is legal in at least some contexts, FCA cases are unique...

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