Whistleblower Pays Price for Frivolous Suit

Faegre Drinker Biddle & Reath LLP
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Serial whistleblower Fox Rx may think twice before filing its next qui tam action.

On Wednesday of this week, the federal court for the Southern District of New York rejected Fox’s plea to spare it from the $169,000 bill submitted by the white shoe law firm that successfully defended Managed Health Care Associates Long Term Care Network (MHA).

Fox’s suit claimed that MHA had overbilled the government for brand name drugs and sold expired drugs to Medicare and Medicaid enrollees.  Last August the court dismissed the suit, declaring it “clearly frivolous” and calling Fox a “serial qui tam relator.”  Then the court ordered Fox to pay MHA’s $169,000 legal bill.  Fox squealed in pain, arguing everything from the “enormous economic disparities” between itself and the defendant to the long locks of time billed by the MHA attorneys.

On Wednesday the court rejected Fox’s plea to spare it from the legal fees, again branding Fox a serial qui tam relator.

The case is Fox Rx v. Omnicare, 1:12-cv-00275.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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