Robbins Russell Wins Dismissal of FCA Qui Tam Suit Alleging $385 Million in False Claims

On June 11, 2020, the U.S. District Court for the Southern District of Florida dismissed a False Claims Act (“FCA”) complaint against Robbins Russell clients Community Health Systems, Inc. (“CHSI”), Community Health Systems Professional Services Corporation, LLC (“CHSPSC”), and 140 hospitals that are or were affiliated with CHSI or CHSPSC (collectively, the “Defendants”).  CHSI is a Fortune 500 company and is one of the largest publicly traded hospital companies in the United States.

Two former employees of CHSPC brought an FCA qui tam suit in federal district court alleging that Defendants had filed false claims in connection with receiving more than $385 million in incentive payments under a federal government program to promote the adoption of electronic-health-record technology in hospitals.  After a lengthy government investigation, the United States elected not to intervene in the lawsuit and the case was unsealed.  Robbins Russell then moved to dismiss.  The court granted the motion, ruling that plaintiffs had not pleaded their allegations with sufficient particularity and that there was no basis to infer any misconduct by Defendants.  The court made the dismissal with prejudice, concluding that any request to amend “lacked merit.”

Robbins Russell partner Michael Waldman, along with associates Brandon Arnold and Lauren Cassady, handled this engagement.

Read the Becker’s Hospital Review article.