In a significant decision for healthcare providers, the Texas Supreme Court reversed a court of appeals decision that had revived claims against a laboratory testing company and reinstated summary judgment for the defendant. The Court held that the Texas Health
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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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Texas AG Secures Nearly $34 Million Settlement with Pharmaceutical Company, Reinforcing Active Ongoing THFPA Enforcement
The Texas Attorney General (“Texas AG”) recently announced a settlement with AstraZeneca Pharmaceuticals LP (“AstraZeneca”) for $33,998,000 to resolve allegations under the Texas Health Care Program Fraud Prevention Act (“THFPA”) arising from the company’s nurse educator program and nurse and…
HHS-OIG Decertifies New York Medicaid Fraud Control Unit, Escalating Federal Scrutiny of State Medicaid Fraud Enforcement
The Administration has taken another significant step in its effort to increase pressure on state Medicaid Fraud Control Units (“MFCUs”). On July 2, 2026, the United States Attorney’s Office for the Northern District of New York announced the U.S. Department…
In House Hearing, DAAG Jenny Discusses FCA Enforcement Priorities Related to Grants, Faces Questioning on Using FCA to Target Discrimination
On June 24, 2026, the Investigations and Oversight Subcommittee of the U.S. House of Representatives Committee on Science, Space, and Technology held a hearing on “Federal Research Funds: The False Claims Act’s Role in Combating Grant Fraud.” Brenna Jenny, DOJ’s…
DOJ Reaches $507,144 Settlement with Defense Contractor, Signals Increased FCA Scrutiny of Cybersecurity Self-Assessments
On June 18, 2026, DOJ announced a settlement with LOGZONE Inc., a defense contractor, to pay $507,144 to resolve allegations that it violated the False Claims Act through its failure to satisfy cybersecurity requirements in its contracts with the Department…
Challenging Executive Order on DEI, States Say It Gets FCA Materiality Wrong
On June 10, 2026, nineteen states and the District of Columbia filed an Administration Procedure Act suit challenging President Trump’s Executive Order No. 14398 (the EO), on which we have previously reported here. The EO advances the Trump Administration’s…
DOJ Announces Accelerated Review of FCA Qui Tams Alleging Fraud Against State-Administered Benefits Programs
It is not business as usual at DOJ. In the latest announcement related to the Department’s efforts to fight alleged fraud, on May 27, 2026, Assistant Attorney General Brett Shumate issued a memorandum directing DOJ’s Civil Division and U.S. Attorneys’…
DOJ and Texas AG Announce First Settlement in National Investigation of Gender-Affirming Care for Minors
On May 15, 2026, the U.S. Department of Justice (“DOJ”) and Texas Attorney General Ken Paxton announced agreements with Texas Children’s Hospital (“TCH”) resolving allegations related to TCH’s provision of gender-affirming care to minors. The matter marks the first publicly…
Vice President and CMS Announce Suite of New Administrative Actions to Further Federal Anti-Fraud Health Care Initiatives
Last week, the White House and CMS announced a set of new administrative actions to further the Administration’s anti-fraud mission, including in particular CMS’s CRUSH (Comprehensive Regulations to Uncover Suspicious Healthcare) initiative, announced earlier this year. At a May 13,…
Tariff Enforcement at the Forefront: Importer Agrees to Pay $549.5 million in Largest-Ever Trade-Related False Claims Act Settlement
On May 12, 2026, the U.S. Department of Justice (“DOJ”) announced a $549.5 million settlement with Perfectus Aluminum Acquisitions LLC (“Perfectus Aluminum”) and four affiliated warehousing companies (collectively, “the Warehouses”) to resolve allegations that they violated the False Claims Act…