Medical Transcription Company Beats Small Business Fraud Suit

Nov. 13, 2023, 7:07 PM UTC

Veterans Medical Transcription Services Inc. and its owners defeated a whistleblower’s False Claims Act suit alleging they made misrepresentations to improperly win government contracts set aside for service-disabled veteran-owned small businesses.

Whistleblower Thomas Bailey failed to plead fraud with particularity as required by Federal Rule of Civil Procedure 9(b), Judge Beryl A. Howell of the US District Court for the District of Columbia said Monday, dismissing the suit.

The complaint provides “confusing and insufficient allegations regarding the time of any alleged false misrepresentation” about Veterans Medical’s eligibility for the contracts, the court said.

An exhibit in the complaint suggests that ...

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