US EX REL. FOUST v. GROUP HOSPITALIZATION & MEDICAL SERVICES, INC.

Civil Action No. 93-2285(NHJ).

26 F.Supp.2d 60 (1998)

UNITED STATES of America ex rel. Steven M. FOUST and Richard A. Gedrich, Plaintiffs, v. GROUP HOSPITALIZATION AND MEDICAL SERVICES, INC., d/b/a Blue Cross and Blue Shield of the National Capital Area, et al., Defendants.

United States District Court, District of Columbia.

September 8, 1998.


Attorney(s) appearing for the Case

James Feldesman, Feldesman, Tucker, Leifer, Fidell & Bank, Washington, DC, for Steven M. Foust, Richard A. Gedrich.

Suzanne Claire Nyland, U.S. Attorney's Office, Washington, DC, for United States Government.

Robert K. Huffman, Miller, Chevalier, Chartered, Washington, DC, for Group Hospitalization and Medical Services, Inc.

Karen Natalie Walker, Kirkland & Ellis, Washington, DC, for Arkansas Blue Cross and Blue Shield, Blue Cross of California, Blue Cross & Blue Shield of Delaware, Blue Cross & Blue Shield of Georgia, Inc., Blue Cross & Blue Shield of Illinois, Blue Cross & Blue Shield of Iowa, Blue Cross & Blue Shield of Maryland, Inc., Blue Cross & Blue Shield of Michigan, Blue Cross & Blue Shield of New Hampshire, Blue Cross & Blue Shield of North Carolina, Blue Cross & Blue Shield of Utah, Blue Cross & Blue Shield of Virginia, Blue Cross & Blue Shield United of Wisconsin, Blue Cross & Blue Shield of Oklahoma.

Jacqueline Marie Saue, Foley & Lardner, Washington, DC, Charles J. Steele, Washington, DC, for Co/Blue Cross.

Arvid Edward Roach, II, Jay T. Smith, Covington & Burling, Washington, DC, for Blue Cross and Blue Shield of Florida, Inc.

Daniel Edward Toomey, Thompson, Hine & Flory, L.L.P., Washington, DC, Karen Natalie Walker, Kirkland & Ellis, Washington, DC, for Blue Cross & Blue Shield of Kentucky.

Daniel Edward Toomey, Thompson, Hine & Flory, L.L.P., Washington, DC, for Blue Cross & Blue Shield of New Jersey, Inc., The Community Mutual Ins. Co.

Karen Natalie Walker, Kirkland & Ellis, Washington, DC, Mark Hoton, Verrill & Dana, Portland, OR, for Blue Cross & Blue Shield of Maine.

David Pickle, Kilpatrick & Stockton, L.L.P., Washington, DC, for Blue Cross and Blue Shield of Massachusetts, Inc.

Karen Natalie Walker, Kirkland & Ellis, Washington, DC, Christopher A. Shapely, Brunini, Grantham, Grower & Hewes, PLLC, Jackson, MI, for Blue Cross & Blue Shield of Mississippi, Inc.

Karen Natalie Walker, Kirkland & Ellis, Washington, DC, John I. Houseal, Jr., Glanker, Brown, Gilliland, Chase, Robinson & Raines, Memphis, TN, for Blue Cross and Blue Shield of Kansas City, Blue Cross & Blue Shield of Missouri, Blue Cross and Blue Shield of Memphis.

James Jennings Regan, Warren Jay DeVecchio, Kenneth M. Bruntel, Shauna E. Alonge, Crowell & Moring, L.L.P., Washington, DC, for Blue Cross Blue Shield of North Dakota.

Lee Thomas Ellis, Jr., Baker & Hostetler, L.L.P., Washington, DC, Karen Natalie Walker, Kirkland & Ellis, Washington, DC, Randall S. Rabe, Baker & Hostetler, L.L.P., Columbus, OH, for Central Benefits Mutual Ins. Co.

Karen Natalie Walker, Kirkland & Ellis, Washington, DC, Steven J. Fram, Mark J. Oberstaedt, Archer & Greiner, P.C., Haddonfield, NJ, for Capital Blue Cross.

Thomas Joseph O'Brien, Morgan, Lewis & bockius, L.L.P., Washington, DC, Alexander Kerr, Washington, DC, for Independence Blue Cross.

Mitchell J. Lazris, Hogan & Hartson, L.L.P., Washington, DC, Richard E. Dunne, III, Hogan & Hartson, L.L.P., Baltimore, MD, for Blue Cross of Northeastern Pennsylvania.


MEMORANDUM OPINION

NORMA HOLLOWAY JOHNSON, Chief Judge.

Former federal government auditors Steven M. Foust and Richard A. Gedrich bring this action under the qui tam provisions of the False Claims Act. This is an action for statutory civil penalties and damages arising out of alleged violations of 31 U.S.C. § 3729. All defendants have moved to dismiss Foust and Gedrich's second amended complaint and the United States has moved to dismiss Foust...

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