In a further sign that healthcare fraud enforcement remains a top Department of Justice (“DOJ”) priority, on April 30, 2026, the National Fraud Enforcement Division ( “Fraud Division”) announced the launch of the West Coast Health Care Fraud Strike Force
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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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E.D. Pa. Rejects Indefinite Sealing of FCA Extension Materials, Emphasizing Narrow Purpose of Seal
A recent decision from the Eastern District of Pennsylvania provides an important procedural win for defendants and a reminder that the False Claims Act’s seal provision is not intended to provide indefinite confidentiality. In United States ex rel. Compton v.…
Texas Qui Tam Under Fire: Texas Appellate Dissent Raises Major Constitutional Doubts
In a closely watched mandamus proceeding, the Texas Fifteenth Court of Appeals denied mandamus relief to a defendant pharmaceutical company in a qui tam case brought under the Texas Healthcare Program Fraud Prevention Act (the “Act”). While the majority declined…
DOJ Announces FOCUS Initiative to Work with Data Miners Filing Qui Tams
As we previously reported here, record numbers of cases are being filed by “whistleblowers” under the FCA—approximately 1,300 qui tam suits last year alone. This morning, Brenna Jenny, the Deputy Assistant Attorney General, Civil Division, Commercial Litigation Branch, announced…
Ninth Circuit Rejects $8.5M Award Of Attorneys’ Fees to FCA Whistleblower
The U.S. Court of Appeals for the Ninth Circuit issued a decision that reenforces the high bar for an award of attorneys’ fees above the lodestar amount in an FCA case. In United States ex rel. Thrower v. Academy Mortgage…
DOJ Announces First FCA Settlement Resolving Title VII Discrimination Allegations
Last week, the Department of Justice (“DOJ”) announced a more than $17 million settlement with IBM to resolve allegations that the company violated the FCA by defying “anti-discrimination requirements as set forth in Title VII.” This is the first settlement…
Ninth Circuit Opens Door to FCA Liability for Alleged 340B Overcharges
A recent decision from the U.S. Court of Appeals for the Ninth Circuit significantly reshapes the intersection of the False Claims Act (FCA) and the 340B Drug Pricing Program (340B Program). In United States ex rel. Adventist Health System of…
Fourth Circuit Highlights Tougher Path to Dismissal of FCA Cases Post-SuperValu
A divided panel of the Fourth Circuit reversed the dismissal of a qui tam FCA suit alleging that the defendant pharmaceutical company underpaid Medicaid rebates by misreporting “best price” under the Medicaid Drug Rebate Statute. The decision marks the Fourth…
Fifth Circuit Panel Produces Three Opinions Wrestling with Application of First to File Bar
On March 9, 2026, a divided panel of the Fifth Circuit revived a long-running qui tam suit against Lockheed Martin and reversed a district court’s dismissal of the relator’s complaint on first-to-file grounds. United States of America ex rel. Ferguson…
Strictly Enforcing Rule 9(b), Second Circuit Affirms Dismissal of FCA Claim Based on Allegedly Defective Medical Devices
The Second Circuit affirmed dismissal of an FCA qui tam based on allegedly faulty medical devices, an area marked for particular FCA scrutiny by the DOJ-HHS FCA Working Group, as discussed here. The Second Circuit held the relator failed…