Miles & Stockbridge won a major False Claims Act case on May 11, 2021 before the U.S. District Court for the District of Delaware. Circuit Court Judge Bibas (sitting by designation) dismissed, with prejudice, all counts in a federal False Claims Act action against TidalHealth Nanticoke, Inc., two of its providers, and two independent durable medical equipment suppliers.

The plaintiff relator filed the complaint, alleging that each provider filed false claims to the government that violated the Anti-Kickback Statute and Stark Law, violated patients’ freedom of choice, and that certain claims were not medically necessary. On behalf of defendant TidalHealth Nanticoke, Inc., the Miles & Stockbridge legal team, led by Jennifer Coyne, moved to dismiss the complaint in full, arguing that the allegations were insufficient to support claims. The government declined to intervene, but did not join in a request for dismissal. After full briefing, the court dismissed all counts, ruling that the relator failed to plausibly allege her claims and declining to permit amendment of the complaint.

This case is the second full dismissal in a row of a major False Claims Act case handled by Miles & Stockbridge for client TidalHealth.

Click here to read two recent stories about the case in national publications Bloomberg News and Becker’s Hospital Review. Login may be required.