The Fourth Circuit Joins Other Circuits in Adopting the “One Purpose Test” While Upholding a $114M Jury Verdict
The Fourth Circuit becomes the most recent Circuit Court to adopt the test for the Anti-Kickback Statute 42 U.S.C. § 1320a-7b(b) “that at least one purpose of the remuneration was to induce the referral of services, rather than the primary purpose of the remuneration.” United States v. Mallory was appealed from a two-week jury trial from the District of South Carolina, which found defendants Latonya Mallory, Floyd Dent, and Robert Bradford Johnson liable for violating several counts of the False Claims Act. The defendants sought to overturn the $114 million verdict on several grounds, including that the District Court erred by instructing the jury that one purpose of the remuneration was to induce referrals.
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