United States ex rel. Michaels v. Agape Senior Community

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Relators filed a qui tam action under the False Claims Act (FCA), 31 U.S.C. 3729-3733, alleging that Agape fraudulently billed Medicare and other federal health care programs for services to thousands of patients. The district court determined that using statistical sampling to prove relators' case would be improper. The district court also rejected a proposed settlement between relators and Agape, because the Attorney General of the United States objected to it. The district court concluded that the Government — despite not having intervened in an FCA qui tam action — possesses an unreviewable veto authority over the action's proposed settlement. Then the district court certified both its rulings for these interlocutory appeals. The court concluded that, under the plain language of section 3730(b)(1), the Attorney General possesses an absolute veto power over voluntary settlements in FCA qui tam actions. Therefore, the court affirmed the district court's unreviewable veto ruling. In regard to the statistical sampling ruling, the court concluded that relators' appeal does not present a pure question of law that is subject to the court's interlocutory review under 28 U.S.C. 1292(b). Accordingly, the court dismissed as improvidently granted relators' appeal as to this rule. View "United States ex rel. Michaels v. Agape Senior Community" on Justia Law