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December 19, 2018

“DOJ: Company Wasted 1,500 Hours of Gov’t Time Filing Meritless Suits”

The U.S. Department of Justice (DOJ) announced it was looking to dismiss 11 False Claims Act lawsuits after learning a company used a cookie-cutter-style model and major plaintiffs’ lawyers to file qui tam lawsuits that were “essentially cloned,” Law360 reports.

A report by Legal Newsline in Forbes further investigated the companies that filed the suitsHealth Choice Group and its parent company National Health Care Analysis Groupand found them to be established by investment bankers and represented by “prominent” plaintiffs’ lawyers like Mark Lanier of Texas. Under the guise of a “qualitative research study,” these companies offered to pay employees of major pharmaceutical companies to give them information that was later used in qui tam, or whistleblower, lawsuits under the False Claims Act.

According to the DOJ, it was “apparent that certain allegations are repeated from one complaint to the next, including seemingly particularized allegations.” According to Legal Newsline, DOJ attorneys spent 1,500 investigating the 11 complaints before concluding they should be dismissed.

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