High Court Won’t Review Allstate Whistleblowers’ Fraud Claims

The US Supreme Court Tuesday said it won’t review whistleblowers’ claims that Allstate Insurance Co. and others violated the False Claims Act by hiding from Medicare its obligation to pay medical bills.

The US Court of Appeals for the Sixth Circuit affirmed rejection of a suit filed by Michael Angelo and MSP WB LLC, finding that they didn’t sufficiently allege a reverse false claim.

A reverse false claim occurs where a party engaged in a false or fraudulent effort to avoid making a payment owed to the government by that party, the appeals court said. The whistleblowers’ complaint—which says Allstate ...