For understandable reasons, the False Claims Act restricts qui tam whistleblowers from bringing fraud claims crafted out of information that has already been publicly disclosed. The U.S. Supreme Court tightened the disclosure bar back in May, when it ruled that a government agency’s response to a Freedom of Information Act request constitutes a public “report.”
But some qui tam claims can survive an FOIA disclosure, as Southern District Judge Jed Rakoff (See Profile) reminded a pair of defendants in a ruling on Feb. 17. Judge Rakoff refused to dismiss a whistleblower’s False Claims Act suit accusing Huron Consulting Group and Empire HealthChoice of overbilling Medicare and Medicaid by $50 million while running now-bankrupt St. Vincent Medical Center. Even though whistleblower Steven Landgraber had received FOIA responses concerning the alleged fraud, the judge concluded, the claims in the case originated with Mr. Landgraber.
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