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United States ex rel Poteet v. Bahler Medical, Inc.

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Before Lipez, Howard and Thompson, Circuit Judges.

The False Claims Act (FCA) allows private persons to file qui tam actions on behalf of the United States against persons or entities who knowingly submit false claims to the federal government. 31 U.S.C. § 3730. In 2007, Jacqueline Kay Poteet brought a qui tam action against 120 spine surgeons*fn1 and eighteen medical device distributors. Poteet, a former employee of Medtronic Sofamor Danek USA, Inc. (MSD), claimed that the defendants defrauded the federal government by, among other things, unlawfully promoting the medical products of MSD and its parent Medtronic Inc.

The district court dismissed Poteet’s action with prejudice. The court held that the claims against the doctor defendants were jurisdictionally barred by the FCA’s public disclosure provision, id. § 3730(e)(4)*fn2 , and that the claims against the distributor defendants were not pled with the particularity required by Federal Rule of Civil Procedure 9(b) for claims sounding in fraud.

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