Life Sciences

OIG publishes guidelines for evaluating state false claims acts

Pharma Compliance Alert, August 23, 2006

A new OIG publication out this week provides guidelines for evaluating whether or not state false claims acts meet the standards required for the state to collect an extra 10% of recoveries. Effective January 1, any state that implements its own false claims act will receive a 10% larger share of any recovery it makes under that law. However, in order to receive the increase, state false claims acts must contain certain elements.

One of those required elements is a qui tam provision, which rewards whistleblowers. In considering a state false claims act's qui tam provision, the OIG will examine whether the law:

  • Authorizes someone to bring a civil action for a violation of the state false claims act for the person and for the state

  • Requires a copy of complaint and written disclosure of material evidence and information to be served on the state attorney general

  • Provides that when someone brings a qui tam action no person other than the state may intervene or bring a related action based on the facts underlying the pending action

  • Sets forth rights of parties to qui tam actions

  • Rewards whistleblowers with a share of the proceeds of the action or settlement of the claim

  • Includes a statute of limitations period

  • Establishes the burden of proof for each of the elements of the cause of action including damages

  • Provides a cause of action for someone who suffers retribution from employers for whistleblower activities related to the state false claims act

    Go to the OIG's Web site for the full guidelines, including criteria that the OIG will use to evaluate other required elements of state false claims acts.

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