United States ex rel. Heineman-Guta v. Guidant Corp.

Appellant, on behalf of the United States, brought a qui tam action under the False Claims Act (FCA) against Guidance Corporation and Boston Scientific Corporation (BSC), alleging they engaged in a kickback scheme to promote the sale and use of their cardiac rhythm management devices. However, a former employee of BSC had previously filed a qui tam action against BSC, which was later dismissed, alleging similar claims. The district court dismissed Appellant's complaint for lack of subject matter jurisdiction on the basis that the earlier-filed complaint barred consideration of Appellant's complaint under the first-to-file rule of the FCA, 31 U.S.C. 3730(b)(5). Appellant appealed, arguing that the earlier-filed complaint could not serve as a preclusive first-filed complaint to trigger the first-to-file bar because it did not meet the heightened pleading standard under Fed. R. Civ. P. 9(b). The First Circuit Court of Appeals affirmed, holding that section 3730(b)(5) does not require the first-filed complaint to meet the heightened pleading standards of Rule 9(b) to bar a later-filed complaint. View "United States ex rel. Heineman-Guta v. Guidant Corp." on Justia Law