Deaton Quoted in Article on Recent False Claims Act Clarification Ruling

O’Melveny partner David Deaton was recently quoted in the article, "Supreme Court Tightens Scope of False Claims Act" for the online edition of American Medical News.

In the article, lawyers and others weigh in on the implications for health care fraud cases of the recent US Supreme Court ruling on the application of the False Claims Act. The June opinion in Allison Engine Co. Inc v United States derived from a conflict in the lower courts over whether parties who do not directly bill the government can be held liable for fraudulently obtained funds under the False Claims Act.

“The ruling suggests that the statute was not meant to be an all-purpose remedy that allows the government to invoke the act any time federal funds are misused,” Deaton commented to the publication. “To convert the False Claims Act into a broader anti-fraud statute runs contrary to its purpose, which strictly is to protect the federal treasury."

August 11, 2008

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