A federal judge in Massachusetts has dismissed a qui tam action filed by a former Cardinal Health executive, on account of it being too similar to a then-pending complaint against Cardinal by Omni Healthcare. The ‘first-to-file’ rule of the False Claims Act played a pivotal role in this decision.
Michael Mullen, the ex-senior vice president and general manager of the Cardinal Health Specialty Solutions Group, accused five physician practices of accepting kickbacks. His action targeted Birmingham Hematology and Oncology Associates, Oncology Specialties, Dayton Physicians, Northwest Medical Specialties, and Health First Medical Group. However, U.S. District Judge Nathaniel M. Gorton for the District of Massachusetts concluded on September 7 that this amended complaint was barred by the aforementioned rule.
In response to the verdict, Bob Rhoad, a partner at Nichols Liu who represented the defendant Health First Medical Group said, “By having the guts to fight meritless lawsuits, like this one, and win, Health First is able to preserve its resources to put them to their highest use—serving the needs of its members, versus lining the pockets of parasitic whistleblowers and their lawyers. Health First believes that Judge Gorton got it exactly right and is grateful for the vindication it earned.”
For further reading on this case, the legal analysis is available here.