US ex rel. Steury v. Cardinal Health, Inc., No. 09-20718

False Claims Act Action

In US ex rel. Steury v. Cardinal Health, Inc., No. 09-20718, an action claiming that defendants sold the U.S. Department of Veterans Affairs defective medical equipment in violation of the False Claims Act, the court affirmed the dismissal of the action where the factual allegations in the amended complaint provided no basis for implying a false certification.  However, the court reversed final judgment for defendant where the district court granted leave to amend but nonetheless entered a final judgment before the time to amend expired.

As the court wrote:  "Relator Leslie Steury, on behalf of the United States, claims that defendants Cardinal Health, Inc., Cardinal Health 303 Inc., and Cardinal Health Solutions, Inc., successors to Alaris Medical Systems, Inc., sold the United States Department of Veterans Affairs defective medical equipment in violation of the False Claims Act (FCA), 31 U.S.C. § 3729(a) (2009). A magistrate judge recommended dismissing Steury's complaint for failure to state a claim under Federal Rules of Civil Procedure 9(b) and 12(b)(6), but also recommended granting Steury leave to amend."

Related Resources

• Read the Fifth Circuit's Decision in US ex rel. Steury v. Cardinal Health, Inc., No. 09-20718