Faegre Drinker Team Secures Favorable First Circuit Ruling for Regeneron in False Claims Act Case

On February 18, 2025, a Faegre Drinker litigation team led by partner Richard Scheff received a favorable ruling from the First Circuit for client biotechnology company Regeneron Pharmaceuticals in a False Claims Act (FCA) kickback theory case.

The question presented to the First Circuit hinged on a 2010 amendment to the Anti-Kickback Statute (AKS), included in the Affordable Care Act, that said billing claims “resulting from” kickbacks are false under the FCA. 

The lower court had previously ruled in Regeneron’s favor that the phrase “resulting from” in the 2010 AKS amendment required the federal government to prove “but for” causation.

On interlocutory appeal, the First Circuit affirmed that ruling, holding that "to demonstrate falsity under the 2010 amendment, the government must show that an illicit kickback was the but-for cause of a submitted claim." By adopting the “but-for causation” standard, the First Circuit requires any FCA cases relying on the 2010 amendment to show that billing of Medicare wouldn't have happened if not for kickbacks.

The Faegre Drinker team included partners Rich Scheff, Katharine Ladd and Alec Harris. Clement & Murphy PLLC, Ropes & Gray LLP, and Paul Weiss Rifkind Wharton & Garrison LLP also represented Regeneron in the appeal.

See Law360’s coverage of the case and verdict for more details.