Archives: Worthless Services

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In Calculating FCA Damages, Another Court Rejects Government Windfalls Based on Purportedly “Tainted Claims”

Last month, the US District Court for the District of Columbia delivered another blow to the “tainted claims” theory of False Claims Act (FCA) damages frequently espoused by the government and qui tam relators. From the 1990s through 2004, the US Postal Service sponsored a professional cycling team led by Lance Armstrong, who won the … Continue Reading

“Worthless Services” Claims Continue to Receive Serious Scrutiny

On October 5, 2015, the U.S. District Court for the Northern District of Illinois dismissed with prejudice a complaint alleging False Claims Act (FCA) and Illinois False Claims Act violations based on Medicaid billing in United States ex rel. Bellevue v. Universal Health Services of Hartgrove, Inc.  In doing so, the district court reaffirmed the … Continue Reading

Courts Continue to Construe “Worthless Services” Theory Narrowly (if at all)

Last August, the Seventh Circuit decided U.S. ex rel. Absher v. Momence Meadows Nursing Center, Inc., 764 F.3d 699 (7th Cir. 2014), a decision that cast significant doubt on the “worthless services” theory of False Claims Act (FCA) liability.  The Absher court declined to address the validity of the “worthless services” theory as a general … Continue Reading
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