The Fifth Circuit's recent decision in U.S. ex rel.
Gwendolyn Porter v. Magnolia Health Plan, Inc. reinforces the
robust gatekeeping function of district courts in False Claims Act
("FCA") cases, and offers additional support for avoiding
costly discovery in FCA matters.
The relator in Porter was the former employee of a Coordinated
Care Organization that contracted with the Mississippi Division of
Medicaid. She alleged that her former employer violated the FCA by
using "licensed practical nurses" for tasks reserved
under contract and Mississippi law for "licensed registered
nurses." The federal government declined to intervene. After
the defendants moved to dismiss, the district court granted the
motion and dismissed the suit with prejudice.
