Judge Bars Whistleblower Claims In Liberty Medical Ch. 11

Law360, Wilmington (February 6, 2014, 9:07 PM EST) -- A Delaware bankruptcy judge on Thursday disallowed several claims in the Liberty Medical Supply Inc. Chapter 11 connected to former employees’ $69 million U.S. False Claims Act lawsuit in Florida, siding with the debtor who says there’s no proof it tampered with data to avoid reimbursing Medicare overpayments.

In a 71-page opinion, U.S. Bankruptcy Judge Peter J. Walsh wrote that former employees Deborah Loveland and Lucas Matheny provided no proof of a false record or statement, no proof that Liberty had knowledge of any falsity and...
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