U.S. ex rel. D’Alessio v. Vanderbilt Univ. (Summary)

FALSE CLAIMS ACT

U.S. ex rel. D’Alessio v. Vanderbilt Univ., No. 3:11-00467 (M.D. Tenn. Mar. 19, 2014)

The United States District Court for the Middle District of Tennessee denied defendant’s motion to dismiss a lawsuit filed by three physicians (“relators”) under the federal False Claims Act.  The court held that the relators’ first-hand knowledge of defendant’s specific false billing practices and procedures was sufficient to create a strong inference of purported fraud notwithstanding the absence of specific instances of fraud in relators’ complaint. In addition, the court found the “public disclosure bar” and “original source” requirements did not preclude the relators’ lawsuit because they possessed first-hand knowledge of relevant events that was acquired while they provided services for defendant.