DoJ Defends 'Fraud-on-FDA' in 1 Specific Case
While declining to intervene in a whistleblower case involving Trividia Health blood glucose meters, the Department of Justice (DoJ) has filed a “statement of interest” with a Florida federal court that provides a “vigorous defense” of the “fraud-on-FDA” theory of liability. Writing in Sidley’s False Claims Act Enforcement and Litigation, three of the company’s attorneys say the department argued that when a manufacturer perpetrates a fraud on FDA by hiding material information concerning the safety or efficacy of a medical device and federal healthcare programs then pay for that device, that fraud may be “integral to a causal claim leading to payment” and thus can be actionable under the False Claims Act.
The attorneys write that the DoJ reasoned that when federal healthcare programs are deciding whether to pay for a drug or medical device, they rely on FDA to determine whether the product is safe and effective. FDA, the department said, relies on manufacturer compliance with the Federal Food, Drug, and Cosmetic Act.
“DoJ took the position that where a defendant’s false statements ‘masked problems’ that ‘would have prompted FDA to institute or require a medical product recall, subsequent claims relating to the affected devices could be rendered ‘false or fraudulent’ because the government would not have paid the claims for those affected devices but for the defendant’s conduct,” the attorneys say.