Law360, New York (May 17, 2013, 12:16 PM EDT) -- The U.S. Court of Appeals for the Sixth Circuit, in United States ex rel. Hobbs v. MedQuest Associates Inc., 711 F.3d 707 (Sixth Cir. April 1, 2013), recently reversed an $11.1 million False Claims Act judgment, rejecting the government's argument that MedQuest, a diagnostic testing company that operates testing facilities, violated the FCA by failing to meet certain Medicare enrollment requirements. While acknowledging that MedQuest's actions "clearly were at odds with the goals and aims of the Medicare program in several respects," the court stressed that "the bluntness of the FCA's hefty fines and penalties make them an inappropriate tool for ensuring compliance with technical and local program requirements."...