Firsthand Knowledge Needed To Clear FCA Bar, 3rd Circ. Rules

Law360, New York (October 20, 2014, 7:00 PM EDT) -- The Third Circuit on Monday upheld the dismissal of a former Medco Health Solutions Inc. executive's False Claims Act kickback suit against Bristol-Myers Squibb Co. and AstraZeneca Pharmaceuticals LP, saying that firsthand knowledge of improper activity is necessary to overcome the FCA's public disclosure bar.

In a precedential ruling, a three-judge panel said the whistleblower who brought the case, former Medco executive Karl Schumann, exhibited no “direct and independent knowledge” of any purportedly improper activities by the companies to satisfy the “original source” exception to the FCA’s public disclosure bar.

The panel's ruling upheld a January 2013 decision by U.S. District...

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Case Title

Subscribers Only

Case Number

Subscribers Only

Court

Appellate - 3rd Circuit

Nature of Suit

3890 Other Statutory Actions

Date Filed

February 26, 2013

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