Fitzsimmons v. Cardiology Assocs. of Fredericksburg, Ltd. – Aug. 2015 (Summary)

FALSE CLAIMS ACT RETALIATION

Fitzsimmons v. Cardiology Assocs. of Fredericksburg, Ltd., Civil Action No. 3:15cv72 (E.D. Va. Aug. 18, 2015)

A cardiologist whose employment contract was terminated after he alleged improper Medicare billing practices sued his former employer (a group practice) and physician shareholders. The federal district court granted the group’s and individual physician shareholders’ motion to dismiss, in part: the quantum meruit claim failed because a claim for quantum meruit is not applicable when an express contract governs the scope of the demand; and his claim for “Dividends, Distributions, and Shareholder Rights” did not state a cause of action. However, the court held that he adequately pleaded a cause of action for retaliation under the False Claims Act because he alleged he engaged in protected activity; defendants had knowledge of his activities; and defendants took retaliatory actions as a result of his activities. The court stated that summary judgment provides a more appropriate stage to consider the group’s argument regarding post-termination retaliation and the individual shareholders’ arguments regarding individual liability.