Saint Luke’s Health System secures dismissal of False Claims Act claims predicated on alleged Stark Law violations

Client(s) Saint Luke's Health System

Jones Day successfully defended Saint Luke's Health System in connection with a False Claims Act lawsuit based on alleged violations of the Stark Law. Jones Day also represented Saint Luke's in connection with the United States Department of Justice's investigation into the complaint's allegations, which resulted in the United States declining to intervene in the case. The court unsealed the complaint, and the relator continued to pursue the case against Saint Luke's and several related entities. Jones Day moved to dismiss, arguing, among other things, that the complaint failed to satisfy Federal Rule of Civil Procedure 9(b)'s heightened pleading standard for allegations of fraud. The court granted the motion—adopting Jones Day's Rule 9(b) argument and dismissed the case, entering judgment in Saint Luke's favor. The court also denied the relator's motion to set aside the judgment and amend the complaint, agreeing with Jones Day's argument that the amendment would not fix the complaint's Rule 9(b) problems. The relator appealed to the United States Court of Appeals for the Eighth Circuit, but ultimately agreed to dismiss the appeal with prejudice with no recovery on the alleged False Claims Act violations.

Jeffrey Kunin v. St. Luke's Health System, Inc., et al., No. 4:17-cv-00945 (W.D. Mo.); No. 22-2719 (8th Cir.)