Second Circuit – Anti-kickback statute: Camburn v. Novartis Pharmaceuticals Corp.

United States Court of Appeals for the Second Circuit

Anti-kickback statute —Properly pleaded claims

Camburn v. Novartis Pharmaceuticals Corp.

22-2708

Judges Kearse, Carney, and Perez

Background: At issue on appeal is whether the plaintiff adequately stated an Anti-kickback statute violation based on a False Claims Act claim under Section 9(b)’s heightened pleading standard under the Federal Rules of Civil Procedure.

Ruling: The Second Circuit affirmed. The court held that a plaintiff properly states an AKS violation so long as he alleges with the requisite particularity that at least one purpose of the purported scheme was to induce fraudulent conduct. In the present matter, the plaintiff alleged that the defendant held certain sham speaker events with no legitimate attendees, excessively compensated physician speakers for canceled events, and selected and retained speakers to incentivize prescription-writing. However, he did not properly allege facts to support a strong inference of fraudulent conduct.

James E. Miller, of Miller Shah, for the plaintiffs-appellants; Benjamin Gruenstein, of Cravath, Swaine & Moore, for the defendant-appellee.

Oral argument audio