Federal Contracting News

Abbott Can’t Contest Materiality Issue in Medicare Kickback Suit

July 9, 2020, 7:27 PM

Prosecutors saw their discovery burden reduced in a False Claims Act case against Abbott-related companies after convincing a federal judge in Tennessee that alleged kickbacks by Medicare providers are clearly material to the issue of fraud.

The government alleges that entities owned by Abbott Laboratories Inc. improperly forgave Medicare patients’ payments to increase their use of diabetes supplies like glucose meters.

Under the Patient Protection and Affordable Care Act, a claim prompted by an Anti-Kickback statute violation is false or fraudulent as a matter of law, and courts must treat the issue of materiality as “resolved,” Judge Aleta A....

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