U.S. ex rel. Hart v. McKesson Corp.

FCA Qui Tam Suit Dismissed; Anti-Kickback Statute's Scienter Requirement Not Satisfied

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OPINION & ORDER Plaintiff-Relator Adam Hart has filed this qui tam action against McKesson Corporation, McKesson Specialty Distribution LLC, and McKesson Specialty Care Distribution Corporation (collectively “McKesson”) on behalf of the United States of America, the States of California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Louisiana, Massachusetts, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Rhode Island, Tennessee, Texas, Virginia, Washington, and the District of Columbia (collectively “the States”). Hart alleges that McKesson offered business-management tools to specialty oncology practices that joined programs requiring them to purchase a substantial proportion of their drugs from McKesson, and that doing so violated the Anti-Kickback Statute (“AKS”). 42 U.S.C. §1320a-7b(b). Any claims for reimbursement submitted by these practices to the United States or the States, he asserts, were tainted by the kickback scheme and thus in violation of the federal False Claims Act, 31 U.S.C. §3729 et seq. (“FCA”), and the corresponding state laws, see Am. Compl.

1, 3. McKesson has moved to dismiss, arguing that: (1) Hart fails to plausibly allege that the business-management tools constituted remuneration under the AKS; (2) Hart fails to plausibly allege that Defendants acted with the requisite scienter; and (3) Hart fails to plead the fraudulent scheme with the particularity required by Federal Rule of Civil Procedure 9(b). For the reasons that follow, Defendants’ motion to dismiss is granted, though Plaintiff is granted leave to amend. BACKGROUND¹ I. The Parties McKesson Corporation is a Delaware corporation headquartered in Irving, Texas. Am. Compl. 15. McKesson sells pharmaceuticals, medical supplies, and related services to health care providers. Id.

U.S. ex rel. Hart v. McKesson Corp.

FCA Qui Tam Suit Dismissed; Anti-Kickback Statute's Scienter Requirement Not Satisfied

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