Iowa Sleep Medicine Clinic’s FCA Damages Were Improperly Awarded

A district court improperly calculated damages and sanctions associated with an Iowa sleep medicine clinic’s violations of state and federal False Claims Act statutes, a federal appeals panel ruled Friday.

The US Court of Appeals for the Eighth Circuit vacated the lower court’s punitive sanctions and ordered it to apply a baseline civil penalty of $5,500 for each of Steven Zorn and his companies’ FCA violations on or before Nov. 2, 2015. The district court must also determine the punitive sanctions with a single-digit multiplier and the amount of treble damages Zorn owes that is compensatory and punitive independent of ...