Healthcare Reform Opens Door to More Whistle-Blower Suits

As devicemakers face an increase in whistle-blower suits, industry fears that one of the provisions in the new healthcare reform law will make it easier for individuals to file such lawsuits. Before the bill, whistle-blowers could not file claims based on publicly disclosed information unless they were a direct and independent source of the information on which the allegations were based. But under the new law, whistle-blowers can file claims based on previously disclosed information — as long as they have knowledge that “materially” adds to the publicly disclosed allegations.
Devices & Diagnostics Letter