Another court has added its voice to the growing split in False Claims Act (FCA) cases, with the U.S. District Court for the District of Massachusetts recently deciding to adopt the “but for” causation standard. This approach places a higher burden on the government, necessitating it to demonstrate that Medicare reimbursement submissions were directly caused by allegedly illegal kickback payments.
This decision stands as a potential setback for the government’s efforts in FCA cases, as this standard of proof tends to be more challenging to meet. Under the “but for” causation standard, the government will now have to provide evidence that the alleged kickbacks would not have occurred but for the fraudulent activity, rather than just asserting a connection between the two.
The court’s ruling represents yet another addition to the burgeoning body of case law on this pivotal issue of causation in FCA lawsuits. Multiple court jurisdictions have been wrestling with this contentious causation issue, leading to divergent interpretations and applications. This ongoing disagreement is further contributing to a split amongst the various U.S. district courts.
For the full report on this significant legal development, see the article by WilmerHale on JDSupra.