New York Partner Claudia A. Costa obtained dismissal of Qui Tam claims alleging Medicare Fraud, filed in the U.S. District Court for the Southern District of New York. Qui Tam is a provision under the False Claims Act that permits individuals and organizations to present evidence of wrongdoing in an attempt to help initiate prosecution by the United States Government and earn rewards.
The plaintiff alleged violations of the Federal and New York False Claims Act arguing the defendants, an assisted living facility for adults with developmental disabilities and two of its employees, had engaged in fraudulent billings and were improperly reimbursed by Medicare/Medicaid. While the plaintiff was represented by a firm specializing solely in Qui Tam claims, the Southern District of New York Judge found that, despite allowing plaintiff three bites at the apple in amending the Complaint, the plaintiff failed to sufficiently plead allegations of fraud to survive Costa’s motion to dismiss. All claims against the individual defendants were also dismissed.