SACS Achieves Complete Dismissal of Federal Qui Tam Action Alleging False Claims Act Violations

SACS is proud to report that it achieved a complete dismissal of a federal qui tam action based on alleged False Claims Act violations. Plaintiff brought suit against our client and various other school districts in the states of New York, New Jersey, Illinois, North Carolina, Massachusetts, and others alleging that they knowingly submitted false claims to the United States government for Medicaid reimbursement and knowingly violated the Individuals with Disabilities Education Act.

The allegations arose out of remote-learning services provided by numerous school districts across the United States as an accommodation to students with learning disabilities during the height of the COVID-19 pandemic. Specifically, plaintiff alleged that defendants’ failure to convene meetings and amend the students’ Individualized Education Plans to include remote services ran afoul of Medicaid billing requirements.

Despite a voluminous complaint alleging violations of complex statutes, regulations, and administrative guidance, we successfully persuaded the United States District Court for the Southern District of New York that plaintiff failed to plausibly plead a viable cause of action against our client.  This was truly a team effort with Jonathan Shaub, Nick Tam, and Payne Tatich extensively contributing to this great result. 

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