AseraCare Resolves Historic False Claims Act Lawsuit, Preserving Key Lack of “Falsity” Defense
Government contractors should take note of the last week’s announced settlement between hospice care provider AseraCare and the Department of Justice (DOJ) of their long-running False Claims Act (FCA) case, U.S. ex rel. Paradies v. AseraCare Inc., No. 2:12-cv-00245 (N.D. Ala.). The settlement agreement involves a single $1M payment and requires no Corporate Integrity Agreement (CIA). It stands in stark contrast to the $200M originally sought by DOJ. The settlement also keeps intact key rulings by the Eleventh Circuit in the case, which clarified that a mere difference of reasonable opinions will not constitute falsity under the FCA – clarity, which will continue to support defenses for those in both the health care and government contracts industries.
