Cases & Deals

Pediatric Services of America defeats False Claims Act charges

Clients Pediatric Services of America, Inc.

The U.S. District Court for the Southern District of Georgia granted motions to dismiss drafted by Jones Day, dismissing charges brought under the False Claims Act by whistleblower Tracy Payton against her former employers, Pediatric Service of America, Inc. and Pediatric Home Nursing Services. Payton alleged that the defendants, who provide in-home nursing care to medically fragile children, failed to return overpayments to state Medicaid programs and TRICARE, kept insufficient nursing notes, and failed to follow proper billing procedures. Payton had previously dropped claims against several related entities, including current and former PE company owners, following a first round of motions to dismiss. The court subsequently granted the remaining defendants' motions to dismiss the amended complaint, finding that some of Payton's claims were barred by the public disclosure bar and that as to others she had failed to state a claim or to plead fraud with particularity. Following the court's order, Payton agreed to dismissal of all defendants with prejudice.

United States ex rel. Payton v. Pediatric Servs. of Am., Inc. , 2017 BL 313370, S.D. Ga., No. 16-cv-102, 9/6/17