False Claims Act Defense
Overview
Even the most diligent companies are vulnerable to False Claims Act investigations and litigation, which can derail business goals and create a public-relations crisis. Crowell’s nationally recognized FCA Practice includes more than 40 lawyers and provides clients with practical and strategic advice at all stages of FCA matters.
Insights
Client Alert | 2 min read | 06.26.24
Another One: It Pays to Consult the DOJ under the Civil Cyber Fraud Initiative
On June 17, 2024, the Department of Justice (DOJ) announced a $11.3 million False Claims Act (FCA) settlement that touches on two key enforcement priorities: the DOJ’s Civil Cyber-Fraud Initiative and pandemic-related fraud. This settlement, the largest under the Civil Cyber-Fraud Initiative to date, resolved allegations that Guidehouse Inc. (Guidehouse) and its subcontractor, Nan McKay and Associates (Nan McKay), violated the FCA because they failed to conduct pre‑production cybersecurity testing on New York State’s Emergency Rental Assistance Program (ERAP) technology product before public launch, and that Guidehouse used an unapproved third-party data cloud software program to store personally identifiable information (PII).
Client Alert | 2 min read | 06.18.24
Client Alert | 3 min read | 05.07.24
Client Alert | 2 min read | 05.02.24
False Claims Act Settlement Illustrates Value of Disclosure and Cooperation
Representative Matters
Government Investigations
- Representing managed care organization in FCA investigation involving Medicare marketing guidelines and payments to third-party marketing organizations.
- Defending global technology company in FCA investigation of alleged failure to comply with cybersecurity requirements in $700 million government contract.
- Representing an integrated health care delivery system in responding to a DOJ investigation into allegations that the company provided false or incomplete data to state authorities in support of the company’s request for a rate increase in its Affordable Care Act individual plans for plan years 2018 and 2019.
- Represented defense contractor in DOJ investigation of alleged FCA violations based on failure to comply with and false certifications related to Qualified Product List requirements; case settled on favorable terms.
- Defended managed care organization in FCA investigation involving allegations that company submitted duplicate and inflated claims for health care services to veterans. Persuaded the government to resolve the matter contractually.
- Represented large engineering and construction firm in qui tam action and FCA investigation of overcharging based on violations of the Truth in Negotiations Act; case settled on favorable terms, with vast majority of settlement payment focused on non-fraud contract claims.
Litigation
- Obtained dismissal of qui tam suit alleging that contractors marketed and sold products that were not compliant under the Trade Agreements Act. The dismissal was affirmed by the Seventh Circuit on appeal.
- Defended a subcontractor in FCA litigation where the DOJ intervened in case alleging that the subcontractor had provided defective material on a government construction project. The case settled on terms favorable to the defendant.
- Obtained dismissal of a qui tam suit against a national partnership of physicians alleging that the defendant was “upcoding” when billing CMS.
- Defended a Medicare Advantage plan against allegations in a qui tam case that it mispresented the adequacy of its provider network to CMS. The court granted our motion to dismiss.
- Represented regional health system in FCA qui tam action based on alleged pervasive Stark Law and Anti-Kickback Statute violations; won motion to dismiss that forced relator to settle for nuisance value.
Insights
Client Alert | 2 min read | 06.26.24
Another One: It Pays to Consult the DOJ under the Civil Cyber Fraud Initiative
On June 17, 2024, the Department of Justice (DOJ) announced a $11.3 million False Claims Act (FCA) settlement that touches on two key enforcement priorities: the DOJ’s Civil Cyber-Fraud Initiative and pandemic-related fraud. This settlement, the largest under the Civil Cyber-Fraud Initiative to date, resolved allegations that Guidehouse Inc. (Guidehouse) and its subcontractor, Nan McKay and Associates (Nan McKay), violated the FCA because they failed to conduct pre‑production cybersecurity testing on New York State’s Emergency Rental Assistance Program (ERAP) technology product before public launch, and that Guidehouse used an unapproved third-party data cloud software program to store personally identifiable information (PII).
Client Alert | 2 min read | 06.18.24
Client Alert | 3 min read | 05.07.24
Client Alert | 2 min read | 05.02.24
False Claims Act Settlement Illustrates Value of Disclosure and Cooperation
Professionals
Insights
Client Alert | 2 min read | 06.26.24
Another One: It Pays to Consult the DOJ under the Civil Cyber Fraud Initiative
On June 17, 2024, the Department of Justice (DOJ) announced a $11.3 million False Claims Act (FCA) settlement that touches on two key enforcement priorities: the DOJ’s Civil Cyber-Fraud Initiative and pandemic-related fraud. This settlement, the largest under the Civil Cyber-Fraud Initiative to date, resolved allegations that Guidehouse Inc. (Guidehouse) and its subcontractor, Nan McKay and Associates (Nan McKay), violated the FCA because they failed to conduct pre‑production cybersecurity testing on New York State’s Emergency Rental Assistance Program (ERAP) technology product before public launch, and that Guidehouse used an unapproved third-party data cloud software program to store personally identifiable information (PII).
Client Alert | 2 min read | 06.18.24
Client Alert | 3 min read | 05.07.24
Client Alert | 2 min read | 05.02.24
False Claims Act Settlement Illustrates Value of Disclosure and Cooperation