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State University Hospital Fends Off FCA Claims Under "Arm-of-the-State" Test

Client Alert | 1 min read | 07.16.13

In U.S. ex rel. King v. The University of Texas Health Science Center-Houston, a federal court considered whether The University of Texas Health Science Center–Houston was subject to liability under the qui tam provisions of the federal civil False Claims Act, based on a former employee's allegations that the hospital had defrauded the federal government by covering up misconduct related to federal research grants, and retaliated against the employee for reporting the misconduct. Applying the "arm-of-the-state" test (previously discussed here), the court held that the university hospital was a state entity -- and thus, was not a "person" subject to suit under the FCA -- and likewise held that employee's FCA retaliation claim was barred by sovereign immunity, providing a victory in the latest round of FCA scrutiny impacting higher ed institutions (discussed here and here).


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Client Alert | 8 min read | 10.01.25

BIS Issues “Affiliates Rule” to Dramatically Expand Applicability of Entity and Military End-User Lists

On September 29, 2025, the U.S. Department of Commerce Bureau of Industry and Security (BIS) announced a sweeping Interim Final Rule (IFR), (the “Affiliates Rule”) expanding which entities qualify as Entity List or Military End-User entities, thereby subjecting those entities to elevated export control restrictions under the Export Administration Regulations (EAR). U.S. export restrictions applicable to entities on the Entity List, Military End-User (MEU) List, and Specially Designated Nationals and Blocked Persons (SDN List) now apply to foreign affiliates that are, in the aggregate, owned 50% or more by one or more of the aforementioned entities. An entity that becomes subject to these restrictions because of its ownership structure will be subject to the most restrictive controls that attach to any of its parent entities, regardless of ownership stakes....