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Manning & Kass Files Amicus Brief on Behalf of Coalition for Insurance Fraud

March 30, 2022

Manning & Kass, Ellrod, Ramirez, Trester LLP continues to shape the law around the country. On Monday, March 14, the firm proudly filed an amicus brief in the U.S. Court of Appeals for the 7th Circuit on behalf of the Coalition Against Insurance Fraud. The brief was filed in the Astellas US Holdings vs Federal Insurance Company case and urges the court not to allow fraudsters who sign consent decrees in whistleblower cases without admitting criminal fault to submit claims for indemnification and legal fees to their insurer.

As set out in the brief, this issue has important insurance fraud implications. The firm’s brief argued that the ramifications of affirming the District Court’s holding will extend far beyond the individual parties in this litigation, including undermining the Department of Justice’s ability to deter fraud through FCA settlements, and undermining the applicability of federal and state statutes enacted to curtail insurance fraud. It will result, in many cases, in insulating perpetrators of fraud from any consequences for their wrongdoing; their fraudulent scheme(s) will either succeed and be profitable, or their insurers will be required to reimburse the fraudsters for proceeds they are required to return to the victim. 

It's worth noting that the lower court ruled for the fraudster medical company, which agreed to pay $100 million for violating the Federal False Claims Act in a prescription rebate fraud, finding that approximately $60m of the settlement must be paid by the insurer.

The Manning & Kass team was led by Founding Partner Dennis B. Kass and Los Angeles Partner David R. Ruiz

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