Roche Ducks FCA Suit Over Nonexistent Lab Tests

Law360, New York (January 2, 2014, 5:56 PM EST) -- A New York federal judge scrapped a False Claims Act suit accusing Roche Diagnostics Corp. of indirectly defrauding Medicare by failing to address glitches in its laboratory devices, finding Monday that a whistleblower's allegations of bogus billing were too murky.

The ruling, which also weighed in on a budding controversy surrounding the FCA's public disclosure bar, found that while Roche devices may have exaggerated the number of tests performed, there was no evidence of the federal government actually being charged for services that weren't provided.

U.S. District Judge Arthur D. Spatt acknowledged that a more lenient pleading standard is sometimes appropriate...

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