FCA Claim Rightly Axed In $70M Kickback Suit, Judge Says

Law360 (March 6, 2019, 9:17 PM EST) -- A Florida federal judge on Tuesday said a magistrate judge correctly recommended cutting a False Claims Act allegation from litigation accusing a compounding pharmacy and its private equity fund owner of running a $70 million kickback scheme, finding the government's objections unavailing.

U.S. District Judge Beth Bloom sided with U.S. Magistrate Judge Alicia O. Valle’s November determination that the complaint doesn’t sufficiently allege Diabetic Care Rx LLC, which does business as Patient Care America, and owner Riordan Lewis & Haden Inc. caused the presentation of false claims to Tricare, which provides health insurance for active-duty and retired military personnel and their...

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