Defendants appealed from a district court judgment finding them liable for violating the Anti-Kickback Statute and False Claims Act. The Seventh Circuit affirmed in part and reversed in part, finding that the defendants knowingly violated the False Claims Act without protection of a regulatory safe harbor and that the monetary judgment entered by the district court was not excessive under the Eighth Amendment. However, the appellate court further concluded that the trial court erred by calculating damages based on Medicare claims that may or may not have been related to the defendants’ kickback scheme and reversed to allow the district court to clarify which claims resulted from defendants’ illegal conduct. (RIPPLE and BRENNAN, concurring)
Federal 7th Circuit Court
Civil Court
Anti-Kickback Statute