Denali Family Services False Claims Act Defense Victorious
U.S. District Judge Timothy Burgess of Alaska dismissed the claim that the Law Project for Psychiatric Rights made against Lane Powell client, Denali Family Services, and numerous other defendants. The plaintiffs contended that the defendants, including the State of Alaska, were improperly prescribing, dispensing and approving certain drugs to children. In his decision, Judge Burgess recognized that the False Claims Act is limited to a small number of cases that involve original information provided by insiders and whistleblowers. The Judge found that the plaintiffs had brought a “parasitic” lawsuit that improperly relied on public information and did not involve an insider. Lane Powell Counsel to the Firm Matt Claman provided counsel to Denali Family Services, a nonprofit mental health services provider.