DOJ Gets Fraud Claims Against Smart Holding, Ciox Thrown Out

The US Justice Department won dismissal of a whistleblower’s claims alleging that Smart Holding Corp. and Ciox Healthcare LLC were improperly compensated for fulfilling medical record requests by the Social Security Administration.

The DOJ followed proper procedures under the False Claims Act for seeking dismissal of a whistleblower’s claims, Judge Stephen P. McGlynn, of the US District Court for the Southern District of Illinois, said in a Monday opinion.

Whistleblower Brent Gaines sued in 2022, alleging that the companies submitted tens of thousands of claims for payments for medical records to both the Social Security Administration and the Illinois Department ...