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False Claims Act Statistics, News & Analysis

There's a First Time for Every Exception: Sixth Circuit Endorses New Relaxed Version of Rule 9(b) for Relators with "Billing-Related Knowledge"

Further deepening a circuit-split – and potentially upping the odds the Supreme Court will ultimately have to weigh-in – the Sixth Circuit in United States ex rel. Prather v. Brookdale Senior Living Communities, Inc., No. 15-6377, 2016 WL 5539860 (6th Cir. Sept. 30, 2016), adopted a “relaxed” version of Rule 9(b) in certain FCA contexts. The court concluded that although Rule 9(b) generally requires a relator to identify a specific invoice to adequately plead that a false claim was presented to the government, an exception exists where a relator with “personal billing-related knowledge” pleads specific facts that give rise to a “strong inference” that a claim was presented.

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