U.S. Chamber files coalition amicus brief urging Fourth Circuit to hold that as a matter of law, a plaintiff cannot state a claim under the False Claims Act against a drug manufacturer that rests on the defendant’s objectively reasonable construction of an ambiguous statute; such a claim does not satisfy the falsity and scienter requirements of the Act.
Fourth Circuit affirms dismissal of relator’s False Claims Act complaint alleging Medicaid fraud, holding that a defendant cannot act “knowingly” if it bases its actions on an objectively reasonable interpretation of the relevant statute and has not been warned away from that interpretation by authoritative guidance. This objective standard precludes inquiry into a defendant’s subjective intent and ensures that defendants must be put on notice before facing liability for allegedly violating complex legal requirements. The U.S. Chamber filed a coalition amicus brief supporting this result.
Fourth Circuit grants en banc rehearing in case presenting question whether, under the FCA, a defendant can act “knowingly” if it bases its actions on an objectively reasonable interpretation of the relevant statute and has not been warned away from that interpretation by authoritative guidance. U.S. Chamber previously filed coalition amicus brief in the court of appeals in support of affirming the district court’s dismissal of the relator’s complaint.
By equally divided vote, en banc court affirms judgment of district court dismissing False Claims Act suit for alleged violations of Medicaid program obligations. The U.S. Chamber filed a coalition amicus brief supporting affirmance.