In a landmark decision in Zafirov, the Eleventh Circuit yesterday rejected the argument that the FCA’s qui tam mechanism violates the Constitution’s Appointments Clause. Encouraged by concurring and dissenting opinions in which three Supreme Court Justices have recently questioned qui
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The Enhanced Scrutiny blog, published by Sidley Austin LLP, focuses on litigation and legal developments related to mergers and acquisitions (M&A), corporate governance, and securities law. It covers topics such as federal forum provisions in securities litigation, challenges to corporate bylaws, whistleblower complaints and board responsibilities, jurisdictional issues in emerging areas like cryptocurrency, and enforcement actions under the False Claims Act (FCA). The blog also addresses regulatory compliance, corporate governance best practices, and significant court decisions impacting corporate and securities litigation strategies.
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DOJ Continues Medicare Advantage Enforcement Focus with $541.5 Million Settlement
On August 26, 2026, the Department of Justice announced a $541.5 million settlement with a Florida-based provider group serving beneficiaries in the retirement community to resolve allegations that the group violated the False Claims Act by submitting invalid diagnosis codes…
DOJ Announces Second Settlement Resolving FCA Allegations Based on Employment Discrimination
Earlier this week, the Department of Justice (“DOJ”) announced a $21.5 million settlement agreement with five Deloitte entities to resolve allegations that they violated the FCA by engaging in conduct DOJ alleges violated Title VII and Federal Acquisition Regulation (“FAR”)…
Second Circuit Clarifies Scope of “Property” that an FCA “Claim” May Seek
Earlier this month, the Second Circuit issued a notable decision on a rare FCA topic—whether a request to the government seeks “property,” such that the request falls within the FCA’s definition of a “claim.” The Second Circuit determined that a…
DOJ’s $5.15 Million FCA Settlement Reinforces Focus on Tariff and Customs Compliance
On August 5, 2026, DOJ announced a $5.15 million settlement with a Taiwanese light-emitting diode (“LED”) manufacturer and its Texas-based subsidiary to resolve allegations under the False Claims Act (“FCA”), the common law, and the Tariff Act of 1930, as…
$14.1 Million FCA Settlement Underscores Medicare Advantage Coding Scrutiny
On August 3, 2026, DOJ announced a $14.1 million settlement with a management services organization (“MSO”) for primary care groups to resolve allegations that the organization violated the False Claims Act by causing inaccurate diagnosis codes to be submitted to…
New York Ethics Opinion Addresses Ethical Limits on Attorney Participation in Whistleblower Investigations
Lawyers representing False Claims Act whistleblowers need to be mindful of a practical question before a qui tam complaint is filed: how far may counsel go in helping a client develop additional evidence? Ethics Opinion 1297, recently issued by…
Laboratory, Owners, and Investors Settle COVID-19 Testing Fraud Allegations for $24 Million
On July 23, 2026, the Department of Justice announced that clinical lab Magnolia Diagnostics and its owners agreed to pay $19.2 million to resolve allegations that they violated the False Claims Act by billing Medicare for medically unnecessary respiratory pathogen…
DOJ Releases FOCUS Questionnaire to Assist in Evaluating Qui Tams Filed by Data Miners
June DOJ/SBA FCA Settlement Highlights Continued Focus on Contractor Compliance
On June 9, 2026, DOJ announced a settlement with Broadway Electric Inc. (“Broadway”); its subsidiary, Cornerstone Contracting Inc. (“Cornerstone”); and two of their individual executives, for $21.3 million to resolve False Claims Act allegations. The settlement targeted alleged fraud against…