Law360 Quotes Partner Neil Merkl on False Claims Act and “Worthless Services” Theory
June 9, 2014

Partner Neil Merkl was quoted in the Law360 article, “FCA Suits Over 'Worthless Services' On The Rise.” The article discusses how whistleblowers are increasingly launching False Claims Act litigation accusing health care providers and defense contractors of supplying “worthless services,” as opposed to nonexistent services. The article notes that there appear to be many more examples of courts rejecting worthless-services suits, usually on the grounds that even if taxpayers received low-quality service, they still received something, and therefore the FCA isn’t applicable. Mr. Merkl stated that “worthless still pretty much means worthless,” and that “there really is no bright line,” meaning that there is no definitive way to distinguish between a service with very little value and one with no value at all.