Successful Dismissal of a Multi-Million Dollar False Claims Act Suit

In November 2014, the firm secured a decision from the U.S. Court of Appeals for the Third Circuit affirming summary judgment for our client, a Fortune 500 medical device manufacturer, in a significant False Claims Act (“FCA”) suit. The relator filed a qui tam action accusing our client of fraudulently omitting discounts that had been extended to other commercial customers in its bids to sell ultrasound, magnetic resonance imaging, and other medical equipment to the U.S. Department of Veterans Affairs. After transferring venue to the Eastern District of Pennsylvania and narrowing the case on a motion to dismiss, the firm prevailed on all claims at summary judgment. The relator appealed the decision to the Third Circuit, which held that “the District Court correctly concluded that [the relator] could show none of the required elements” of his FCA claim, and specifically, that “no reasonable juror could conclude that [our client] made knowingly false statements to the VA.”