Sixth Circuit Affirms Dismissal Of False Claims Act Case Based On HITECH Data Breach

In United States ex rel. Sheldon v. Kettering Health Network, 816 F.3d 399 (6th Cir. 2016), the Sixth Circuit affirmed the lower court's dismissal of a False Claims Act ("FCA") suit based on a data breach involving electronic health records. The relator alleged that defendant Kettering Health Network ("Kettering") violated the FCA by falsely certifying its compliance with the Health Information Technology for Economic and Clinical Health Act (the "HITECH Act" or the "Act"), under which it received incentive payments from the federal government. The Sixth Circuit held that the conduct the relator complained of in this case did not constitute a violation of the Act, particularly as the Defendant had policies and procedures in place to protect the information. As a result, the relator had not alleged facts that established a false statement or false attestation of compliance. The panel also held that dismissal of the complaint was independently warranted because the