Posts Tagged ‘qui tam’

Eastern District of Texas branches out

Marshall, Texas, famed as patent plaintiffs’ forum of choice, returns a $663 million False Claims Act verdict against Trinity Industries in guardrail supply case [Insurance Journal; earlier on the unique qualities of the Eastern District of Texas, earlier on the Trinity litigation here and here]

And more Marshall fun: Texas patent holding company files 49 lawsuits in a week, isn’t listed on own office building’s directory [Legal NewsLine]

Liability roundup

  • Lester Brickman, others testify before House subcommittee on proposed asbestos-reform FACT Act [Chamber-backed Legal NewsLine]
  • “B.C. student-turned-dominatrix awarded $1.5M after car accident left her with new personality” [National Post]
  • Here, have some shredded fairness: New Jersey lawmakers advance False Claims Act bill with retroactive provisions [NJLRA] Maryland False Claims Act, which I warned about last year, reintroduced as leading priority of new attorney general Brian Frosh [Maryland Reporter; my coverage here, here, etc.]
  • Oregon: a “man badly burned when he poured gasoline on a fire is suing Walmart, claiming the gas can he bought there was defective.” [KOIN]
  • Minnesota jury is latest to buy sudden-acceleration case, awards $11 million against Toyota [Reuters]
  • Insurers, trial lawyers gear up for Texas legislative fight over hailstorm litigation [Bloomberg/Insurance Journal]
  • Breaks ankle in “watch this” stunt, files negligence claim, but some spoilsport posted the footage to YouTube [U.K.: City of London police]

Medical roundup

  • King v. Burwell: next ObamaCare showdown at Supreme Court [Ilya Shapiro and Josh Blackman, David Bernstein on Cato brief, Adler v. Bagley Federalist video, Michael Greve with theory of Justice Kennedy riding off to Colorado with Dagny, earlier]
  • “J&J says women being illegally solicited to join in mesh lawsuits” [Jessica Dye/Reuters, same on lawyers’ response, more on which]
  • Invoking ACA, feds regulate non-profit hospitals to require periodic community needs assessment, limit collection methods [Treasury]
  • Unless judges are vigilant, lawyers will take advantage of mass tort joinder to evade CAFA limits on forum-shopping [Steven Boranian, Drug & Device Law]
  • Popular literature on IRBs/consent of research subjects can employ dubious definitions of “coercion” [Simon Whitney via Zachary Schrag]
  • Qui tam lawyers vs. pharmaceutical companies, some empirical findings [Bill of Health]
  • So that’s what “anatomical theatre” means: researcher checks into ostensible open-source medical journals and finds many “had suspicious addresses; one was actually inside a strip club.” [Fast Company on report finding that fake paper was accepted for publication by 17 journals]
  • A student of David Henderson’s recalls the state of medicine under the Soviets: assignment to providers based on place of residence; the role of gifts, favors, and clout; how idealistic doctors became cynics; the black market as a safety valve. [EconLog]

Don’t hold us to time limits for suing, the nation’s at war

Last year I wrote a piece for Jurist on the Wartime Suspension of Limitations Act (WSLA). Now the False Claims Act case of Kellogg Brown & Root Services, Inc. v. United States ex rel. Carter is before the Supreme Court, which heard oral argument on Tuesday. [transcript; Ronald Mann/SCOTUSBlog; WSJ editorial; Courthouse News; earlier here and here]

Politics roundup

New at Reason: Bigger bounties for tax tipsters

[cross-posted and slightly adapted from Cato at Liberty]

I’ve got a guest post up at Reason on how bounty-seeking informants are bypassing the Internal Revenue Service tipster-reward program in favor of selected state False Claims Acts, such as New York’s, which enable richer recoveries for disloyal employees and others who charge defendants with underpaying taxes. Excerpt:

Will the spread of a culture of informants sow distrust and disloyalty in the workplace, while encouraging dissident executives and their lawyers to shake settlements out of risk- and publicity-averse targets by seizing on doubtful, gray-area legal theories? That’s part of the game too. Lately hedge funds and litigation finance firms have moved in to bankroll the filing of likely “whistleblower” cases. …

…by getting pro-plaintiff laws through the legislature in just a few states—New York liberalized its law four years ago—advocates can set the stage for a nationwide informant push.

In Illinois, a single Chicago lawyer was reported in 2012 to have used that state’s whistleblower law to file at least 238 lawsuits against retailers, pocketing millions in settlements, over alleged failure to charge sales tax on shipping-and-handling.

Whole thing here.

P.S. More recent coverage of the runaway False Claims Act train: “Repeat whistleblowers reap millions of dollars in false-claims suits” [ABA Journal] David Ogden testifies for the U.S. Chamber on what needs to happen with the federal FCA [House Judiciary] “UK Commission Takes A Pass On U.S.-Style Whistleblower Bounties” [Daniel Fisher, Forbes]

Pharmaceutical roundup

  • “Report: Government warnings about antidepressants may have led to more suicide attempts” [Washington Post]
  • Celebrity doc known for touting diet-health snake oil told off by Senators known for touting socio-economic snake oil [NBC, Business Week]
  • Physicians’ prescription of drugs off-label may “seem odd to the uninitiated, but it is called the practice of medicine, and there is absolutely nothing wrong with [it].” [Steven Boranian/D&DLaw, Sidley, Steve McConnell/D&DLaw (False Claims Act angle, with much background on that law generally)]
  • “23andMe Closer to FDA Approval” [Matthew Feeney/Cato, earlier]
  • FDA guidance could foreclose most use of tweets, Google ads and other character-limited vehicles in pharmaceutical promotion [Jeffrey Wasserstein/FDA Law Blog, Elizabeth N. Brown/Reason]
  • Average wholesale price (AWP) litigation: “Pennsylvania High Court Joins Judicial Stampede That’s Trampling State Attorneys-General/Plaintiffs’ Bar Alliances” [WLF, Beck, earlier]
  • California infant’s death opens window on lucrative (for some prescribers) intersection of workers’ comp and compounded pharmaceuticals [Southern California Public Radio]

June 26 roundup

  • Court slaps “nightmare” Sacramento litigant Raj Singh with sanctions [KXTV, auto-plays, earlier]
  • Child overprotection: “I don’t think they even drink liquid soap, the gateway drug for sunscreen.” [Lenore Skenazy, Free-Range Kids]
  • Three-fer: personal injury, qui tam lawsuits against guardrail maker coordinated by disappointed patent litigant [Insurance Journal]
  • Donald Trump hit with sanctions in lawsuit for not disclosing insurance policy [South Florida Business Journal, our Trump coverage]
  • On AirBnB and sharing services, it’s lefty economist Dean Baker (con) vs. David Henderson (pro). Go David! [EconLib] London black cabs seek level playing field with Uber. Good idea, let’s deregulate ’em both [Matthew Feeney, Cato]
  • Waffle House chairman claims attorneys committed extortion in ex-housekeeper’s sex lawsuit [Atlanta Journal-Constitution]
  • “Tenth Circuit Says No to ‘Death by Discovery’ in Dispute over Agreement to Arbitrate in Class Action” [Lars Fuller, Class Action Blawg on Howard v. Ferrellgas Partners LP]

State versions of the False Claims Act

The Chamber has been tracking this major engine of contingency-fee litigation as it jumps from federal practice to the realm of similar state laws vigorously lobbied for by the plaintiff’s bar. I have an opinion piece in the Baltimore Business Journal on the Maryland version, which 1) nearly passed this year, 2) would go further than the federal law in some vital respects, and 3) has become an issue in a closely watched primary contest.

May 30 roundup