• False Claims Act Investigations of Health Care Companies: Time for a New Approach?
  • June 22, 2011 | Author: Gregory M. Luce
  • Law Firm: Skadden, Arps, Slate, Meagher & Flom LLP - Washington Office
  • Pharmaceutical, medical device and health care companies face an onslaught of False Claims Act cases alleging a variety of fraudulent and unlawful practices. Traditionally, companies have responded by cooperating with government subpoenas and, eventually, negotiating resolutions that remove the threat of exclusion from federal health care programs, among other things. While this cooperative approach may be viable in some cases, the increasing demands from prosecutors, coupled with lengthier government investigations, make active litigation a viable (if high-stakes) option. Companies should consider a more aggressive strategy, including forcing early unsealing of the qui tam litigation. Unsealing would give companies the right to discovery and other safeguards available under the Federal Rules of Civil Procedure, as well as the opportunity to investigate and remediate the alleged misconduct.