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06-11771 - United States of America ex rel et al v. Blackstone Medical, Inc. et al


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06-11771 - United States of America ex rel et al v. Blackstone Medical, Inc. et al
March 12, 2010
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Judge William G. Young: ORDER entered. MEMORANDUM AND ORDER: 1) The Court denies Blackstones Motion to Transfer Document No. 50. 2) The Court hereby denies Blackstones motion to dismiss based on the False Claims Acts first-to-file rule because the Relators case is not a related action based on the facts underlying the Thomas action, and therefore not jurisdictionally barred under the False Claims Acts first-to-file rule. 3) The Court denies Blackstones motion to dismiss based on the False Claims Act's public disclosure bar as to relator Hutcheson, but allows it as to relator Brown, on the basis that he is not an original source under the public disclosure bar of the False Claims Act. 4) The Court grants the motion to dismiss based on Document No. 52 the failure to state a claim under the False Claims Act, under Federal Rule of Civil Procedure 12(b)(6) because the express certification by the hospitals in seeking payment for the use of Blackstone's devices was personal to the hospital and with no allegations that the hospital knew of the kick-backs, those claims were not false, and the false express certification by the doctors were not material. Judgment shall enter for the defendant Blackstone. SO ORDERED...(Paine, Matthew)