Simpson Thacher Prevails in Two Appeals to the Second Circuit by Alleged “Whistleblowers”
04.05.17
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On April 4, 2017, the United States Court of Appeals for the Second Circuit affirmed the judgment of the District Court for the Western District of New York (Skretny, J.) dismissing with prejudice—as a Rule 11 sanction—a “whistleblower” complaint brought by a personal injury lawyer accusing more than 60 companies of engaging in a nationwide scheme to defraud the government by failing to reimburse Medicare for conditional payments made on behalf of Medicare beneficiaries. The Second Circuit agreed that the plaintiff lacked first-hand knowledge of the alleged fraud, despite repeatedly alleging otherwise.
This follows a January 18, 2017 ruling by the Second Circuit affirming a judgment of the same District Court dismissing a complaint by an alleged “whistleblower” medical doctor against 25 insurance companies accusing them of knowingly and improperly avoiding their obligations to reimburse Medicare payments made by the government.
Bryce Friedman and Tyler Bernstein represented various Travelers entities in the cases styled United States ex rel. J. Michael Hayes v. Allstate Insurance Company, et al. and United States ex rel. Dr. Kent Takemoto v. Nationwide Mutual Insurance Company, et al.