U.S. ex rel. Howze v. Allied Physicians, Inc. (Summary)

FALSE CLAIMS ACT

U.S. ex rel. Howze v. Allied Physicians, Inc., No. 1:11cv35 (N.D. Ind. Mar. 11, 2013)

The United States District Court for the Northern District of Indiana granted one motion to dismiss and denied two others filed by a physician group and a sleep center. A former employee sued a physician group and a sleep center alleging violations of the state and federal false claims act as well as wrongful discharge in retaliation for the protected activity of filing a qui tam lawsuit.  These claims had followed earlier causes of action that the employee had filed alleging race discrimination and retaliation.  After filing those claims, the employee had entered into a settlement agreement with the physician group and sleep center which purported to settle claims related to his separation from employment. 

The district court dismissed the claim of retaliatory discharge.  The court stated that the claims being alleged in the case were the same claims and facts that were dismissed in the settlement agreement. The agreement released both corporations from any liability to claims arising out of the employee’s employment or termination.

With the retaliatory discharge claim dismissed, there were no further claims pending against the physician group, so it was dismissed from the case. The false claim causes of action proceeded against the sleep center.