Medicare False Claims Appeal Filing Presses Novel Defense

A federal appeals court is being asked to dismiss a False Claims Act case against a nursing home chain based on a novel argument: The whistleblower sold some of her interest in the case’s outcome to finance it.

Although third-party financing arrangements are routine in federal court litigation, attorneys representing Consulate Health Care are arguing former nurse Angela Ruckh’s decision to sell some or all of what she may recover if her claims succeed is more than a simple fee arrangement, violates the FCA, and may be suspect under the U.S. Constitution.

The motion, filed with the U.S. Court of ...