October 24, 2014
On October 16, 2014, United States Magistrate Judge Jeremiah McCarthy of the Western District of New York issued a Report and Recommendation to District Judge William Skretny in which he recommended dismissal with prejudice as a Rule 11 sanction of a False Claims Act (“FCA”) case brought by an attorney whistleblower (“Relator”) on behalf of the United States (who has not intervened in the action) seeking millions in damages against over 80 corporate defendants for allegedly participating in a scheme to defraud the federal government out of millions in Medicare payments in relation to the requirements of the Medicare Secondary Payer Act, 42 U.S.C. §§ 1395y et seq.

Several of the defendants in the action moved for Rule 11 sanctions against Relator and his counsel on grounds they had no factual basis to maintain the fraud allegations against them after an unsuccessful dialogue between counsel to attempt to informally resolve the issue. The Report and Recommendation was issued to address the Rule 11 concerns raised by the moving defendants, many of the other defendants, and the Court itself, about the sufficiency of the Relator’s allegations concerning a purported scheme to defraud the United States.

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