Another Court Rules FCA Isn't For Regulatory Violations

Law360, New York (March 3, 2014, 1:44 PM EST) -- In its decision in United States ex rel. Rostholder v. Omnicare Inc. — a case where regulatory noncompliance was sufficiently alleged — the Fourth Circuit resisted attempts to “sanction use of the False Claims Act as a sweeping mechanism to promote regulatory compliance.” (4th Cir. Feb. 21, 2014). Instead, the court made clear that unless compliance with the regulation at issue is a prerequisite to payment by the government, there is no FCA violation.

This decision represents another example of courts adhering to the U.S. Supreme...
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