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California Court: Fair Market Value Payments May Not Avert Anti-Kickback Liability

By Kate Hardey, Timothy Fry, Royce DuBiner & Rebecca Rieckhoff on May 3, 2022
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In February 2022, the U.S. District Court for the Central District of California denied a defendant’s motion to dismiss a qui tam action alleging that the defendant had violated the federal Anti-Kickback Statute (AKS). In its ruling, the court noted that “even some fair-market value payments will qualify as illegal kickbacks.”

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Photo of Kate Hardey Kate Hardey

Kate advises healthcare provider, pharmaceutical, medical device, dietary supplement and life sciences clients on regulatory and compliance matters and in all types of transactions including sales and acquisitions, as well as advising lenders and investors evaluating regulatory risks in cash flow and asset…

Kate advises healthcare provider, pharmaceutical, medical device, dietary supplement and life sciences clients on regulatory and compliance matters and in all types of transactions including sales and acquisitions, as well as advising lenders and investors evaluating regulatory risks in cash flow and asset based debt financing transactions.

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Photo of Timothy Fry Timothy Fry

Tim helps clients navigate the thorny compliance and regulatory issues prevalent in the healthcare industry. He advises on the federal Anti-Kickback Statute and Stark Law, Medicare policy, state fraud and abuse laws, and state licensure and certificate of need rules, among other regulatory…

Tim helps clients navigate the thorny compliance and regulatory issues prevalent in the healthcare industry. He advises on the federal Anti-Kickback Statute and Stark Law, Medicare policy, state fraud and abuse laws, and state licensure and certificate of need rules, among other regulatory schemes. His significant healthcare industry knowledge also allows him to counsel efficiently on regulatory aspects of strategic transactions, including structuring guidance, healthcare due diligence and compliance matters.

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Photo of Royce DuBiner Royce DuBiner

Royce practices food and drug law with a focus on advising pharmaceutical, medical device, cannabis, dietary supplement, tobacco, food and beverage companies as well as investment firms on a range of regulatory matters. He is presently the co-lead of the Cannabis, Hemp, and…

Royce practices food and drug law with a focus on advising pharmaceutical, medical device, cannabis, dietary supplement, tobacco, food and beverage companies as well as investment firms on a range of regulatory matters. He is presently the co-lead of the Cannabis, Hemp, and CBD industry team.

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Photo of Rebecca Rieckhoff Rebecca Rieckhoff
Read more about Rebecca RieckhoffEmail
  • Posted in:
    Administrative, Corporate & Commercial
  • Blog:
    The FCA Insider
  • Organization:
    McGuireWoods LLP
  • Article: View Original Source

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