Statistical sampling has been
generally limited to calculating damages in FCA cases. Courts have recognized that using
extrapolation to establish damages when liability has been proven is different
than using extrapolation to establish liability.
This changed in 2014, when the
U.S. District Court for the Eastern District of Tennessee opened the door for
plaintiffs to argue that sampling should be used not only to calculate damages
but also for establishing the underlying FCA liability. U.S. ex rel. Martin v.
Life Care Ctrs., 2014 WL 10937088 (E.D. Tenn. Sept. 29, 2014).
On Sept. 29, 2015, the Fourth Circuit agreed to hear an interlocutory appeal in U.S. ex rel. Michaels et al. v. Agape Sr. Cmty., Inc., No. 15-238 (12-cv- 03466-JFA) (4th Cir. Sept. 29, 2015), on the issue of whether extrapolation can be used to prove both damages and liability under the False Claims Act (FCA), 31 USCA § 3729 et seq.
By agreeing to hear the Agape appeal, the Fourth Circuit will be the first appellate court to rule on this controversial issue.
No comments:
Post a Comment