Lipka v. Advantage Health Grp., Inc. (Summary)

FALSE CLAIMS ACT/QUI TAM ACTIONS

Lipka v. Advantage Health Grp., Inc., No. 13-CV-2223 (D. Kan. Sept. 20, 2013)

The nursing director of an assisted living center (“ALC”) filed suit against the ALC and others alleging that the ALC unlawfully fired her in violation of the whistleblower protections of the federal False Claims Act (“FCA”).  The U.S. District Court for the District of Kansas granted in part and denied in part the ALC’s motion to dismiss the case.

The nursing director notified the ALC’s administration that the ALC had to obtain a federal regulatory waiver in order for ALC staff to obtain blood samples from residents by use of finger sticks to be tested via glucometer.  The nursing director stated that she had informed administration that the waiver would cost $150, and that administration had rejected the need for a waiver.  The nursing director informed administration that she had previously filed an FCA lawsuit against a former employer over the same waiver issue.  The ALC fired the nursing director four days later.

The district court held that the nursing director had sufficiently stated facts that supported a claim of FCA whistleblower protection against retaliation. She had engaged in a protected activity, acted in a sufficient manner with the administration to raise the inference that she was investigating matters that could reasonably lead to a viable FCA case, and alleged facts that created a reasonable inference that a causal connection existed between her alleged protected activity and the ALC’s determination to fire her four days later.

Accordingly, the court rejected the ALC’s motion to dismiss the case, but did allow for the dismissal of certain individuals as defendants.