E.D.N.Y Denies Motion For Summary Judgment In FCA Retaliation Case Based On Finding Of Pretext

The U.S. District Court for the Eastern District of New York recently found that two former employees of Eihab Human Services (Company) raised a genuine issue of material fact as to whether they were discharged in retaliation for reporting that an executive director ordered an employee to create fraudulent billing records in violation of the whistleblower protection provisions in the federal and state False Claims Acts (FCA). Krause v. Eihab Human Servs., Inc., No. 10-cv-898, 2015 WL 4645210 (E.D.N.Y. Aug. 4, 2015).

Background

After being approached by an employee who was allegedly ordered by the executive director to fabricate records being sent to Medicaid regarding services rendered, the Plaintiffs, a human resources director and an associate executive director, reported the alleged incident to state auditors. As a result, the auditors rejected certain documents. Plaintiffs further alleged that the executive director subsequently threatened to terminate