Massachusetts District Court Denies False Claims Act Retaliation Claim Despite Finding Protected Activity Preceding Termination

On November 13, 2023, following a bench trial, a federal district court in the district of Massachusetts held that an employer's termination of an employee was not a violation of the whistleblower and retaliation protections of the False Claims Act (FCA), despite finding that the employee had engaged in protected activity prior to her termination. Morgan-Lee v. Therapy Res. Mgmt., LLC, No. 13-11997-DWP, 2023 U.S. Dist. LEXIS 202626 (D. Mass. Nov. 13, 2023). This employer-friendly ruling illustrates that employees cannot use protected activity as a shield for behavior that would otherwise warrant discipline or termination.

Factual Background

Plaintiff Rosemary Morgan-Lee was hired in 2003 by Therapy Resources Management (TRM), a company that provided rehabilitation services to nursing home patients. Plaintiff was eventually promoted to director of clinical services, a role that included auditing TRM's medical records for compliance with Medicare reimbursement