The Eastern District of New York recently had to implement
corrective measures when the parties in a Federal False Claims Act
(FCA) proceeding settled too much. Specifically, they inadvertently
agreed to settle away claims of another party that had not joined
the settlement.
The court was presented with a proposed Stipulation of Dismissal
and Order to resolve FCA proceedings in United States v.
AMERISOURCEBERGEN, et al., 2019 WL 624921 (Feb. 6,
2019). Careful monitors of our
running list of FCA recoveries will recognize this as the
single highest recovery of FY2018 coming in at more than $580
million, and one that DOJ hurried to finalize just as the fiscal
year came to a close. In the rush to get this one in the books, the
parties apparently failed to notice that they were settling away
claims that were not in fact theirs to settle.
