Corporate Profits Don’t Amount To DOJ’s Gain Under FCA

Law360, New York (October 30, 2012, 12:40 PM EDT) -- Dealing a blow to the U.S. Department of Justice in what has otherwise been a record-setting year of False Claims Act recoveries (over $9 billion in FY 2012), the U.S. Court of Appeals for the Sixth Circuit recently rejected the notion that corporate profit-seeking is presumptively fraudulent under the FCA. As a result, the court rescinded the lower court’s $82.6 million award of damages to the government and granted summary judgment to the defendants on the substantive FCA claims.

The defendants were a dialysis provider and...
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