Sixth Circuit Recognizes Exception to Heightened Standard for Pleading False Claim
Client Alert | less than 1 min read | 10.12.16
In U.S. ex rel. Prather v. Brookdale Senior Living Communities Inc. (Sept. 30, 2016), the Sixth Circuit held that a relator pled the “presentment” element even though the relator did not allege information regarding the submission of a specific request for payment. The court reasoned that, in the majority of cases, plaintiffs would need to plead representative false claims but that a relator could survive a motion to dismiss by pleading specific facts based on personal, billing-related knowledge that support a strong inference that specific false claims were submitted for payment.
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In a development likely to ramp up regulatory pressure on an industry already under significant federal scrutiny, Federal Trade Commission (FTC) Chairman Andrew Ferguson recently directed leaders across his agency to launch a team dedicated to cooperatively advancing enforcement and advocacy activities relevant to health care.
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