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Satellite-Sensor FCA Suit Comes Crashing Down to Earth

Client Alert | 1 min read | 08.09.17

On August 3, 2017 in United States ex rel. Mateski v. Raytheon Co, a district judge in the Central District of California dismissed a $1 billion False Claims Act (FCA) suit brought by a former Raytheon engineer who alleged that the company overbilled the government and failed to meet product specifications on a contract for satellite sensors. Although Relator had amended his complaint five times, the Fifth Amended Complaint still failed to identify a single specific false representation that Raytheon made to the government. Moreover, the complaint contained only one sentence addressing the materiality of Raytheon’s alleged nonconformity with contract specifications. Citing the Supreme Court’s decision in United States ex rel. Escobar on the implied certification theory of liability, the district court found that relator’s barebones allegations of nonconforming deliveries failed to meet the FCA’s demanding materiality standard and the heightened pleading requirements of 9(b) which were unlikely to be cured by granting further leave to amend.

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Client Alert | 7 min read | 08.17.26

Delayed Notification of Cyberattacks May Trigger HIPAA Breach Notification Rule

After identifying a ransomware attack in 2021, OSF Healthcare System waited until its forensic investigation had concluded before notifying the U.S. Department of Health and Human Services (HHS) — and the affected individuals — of the breach. The 110-day delay (nearly double the 60-calendar-day notification deadline mandated by the HIPAA Breach Notification Rule) triggered an investigation from HHS’s Office for Civil Rights (OCR). The health system’s investigation determined that protected health information (PHI) had been stolen....