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Jordan v. State of GA

Res judicata barred the plaintiffs' state suit on behalf of the State of Georgia against three related pharmaceutical companies under the Georgia False Medicaid Claims Act, O.C.G.A. § 49-4-168 et seq., since an earlier-filed federal False Claims Act suit against the same pharmaceutical companies resolved similar claims.

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Eight individuals brought suit on behalf of the State of Georgia against three related pharmaceutical companies under the Georgia False Medicaid Claims Act GFMCA, OCGA § 49-4-168 et seq.1 The plaintiffs alleged that the companies fraudulently obtained millions of dollars in Medicaid payments for an anti-psychotic medication that the companies improperly marketed to healthcare providers for off-label uses, such as to calm elderly patients with dementia and help them sleep.

The State moved to dismiss the complaint based on an earlier-filed federal False Claims Act, 31 USC § 3729 et seq., suit against the same pharmaceutical companies for similar claims. The State became a plaintiff in the federal suit before this case was filed, and entered into a settlement agreement with the pharmaceutical companies after this case was filed. The trial court granted the State’s motion to dismiss, and the plaintiffs have appealed.2 For the reasons that follow, we affirm.

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