New case on FCA rejects limits on scope of law

The First Circuit, in

2011/06/01

10-1505P.01A

10-1505

U.S. ex rel. Hutcheson v. Blackstone Medical, Inc.     District of Massachusetts, Boston

rejected two purported limitations on FCA liability.The Court rejects the argument that, in the absence of an express legal representation or factual misstatement, a claim can only be false or fraudulent if it fails to comply with a precondition of payment expressly stated in a statute or regulation. Second, the Court allows the argument that a submitting entity's representations about its own legal compliance CAN incorporate an implied representation concerning the behavior of non-submitting entities.