The U.S. Supreme Court declined to hear Eli Lilly’s constitutional challenge to the False Claims Act’s qui tam mechanism, preserving one of the government’s most potent civil fraud enforcement tools. The petition arose from litigation brought by whistleblower Ronald Streck, who accused Lilly of misconduct tied to Medicaid drug rebate reporting.

By denying review, the Court leaves in place lower-court rulings that allowed the case to proceed and, more broadly, avoids reopening a recurring defense-side attack on the False Claims Act’s structure.

The Justice Department has announced an $8.33 million settlement with Modern Nuclear to resolve allegations that the company paid unlawful kickbacks to medical practices tied to its mobile PET scan services, leading to claims reimbursed by federal healthcare programs. While the matter was resolved without a determination of liability, the settlement is a notable reminder that the government continues to treat kickback-driven referral arrangements as a core healthcare-fraud enforcement priority.

According to the government’s allegations, the company’s financial arrangements with physician practices crossed the line from legitimate business relationships into conduct that potentially violated the Anti-Kickback Statute. That matters because claims submitted to federal programs that are allegedly tainted by kickbacks can also trigger liability under the False Claims Act, dramatically increasing exposure through treble damages and per-claim penalties.

For legal and compliance professionals, the case underscores a recurring enforcement theory: even when the underlying services are medically appropriate, the manner in which referrals are obtained can create FCA risk.

The Justice Department’s first public settlement under its Civil Rights Fraud Initiative is an important signal for companies that do business with the federal government. According to a recent litigation summary, IBM agreed to pay roughly $17 million to resolve allegations that certain DEI-related practices conflicted with anti-discrimination obligations tied to federal contracts, creating potential liability under the False Claims Act. The development was highlighted in Thompson Coburn’s Higher Education Litigation Summary.

The legal significance goes well beyond a single settlement amount.

The Department of Justice has announced that IBM will pay approximately $17.1 million to resolve allegations that the company violated anti-discrimination obligations tied to its federal contracts. According to DOJ, IBM’s diversity, equity, and inclusion practices allegedly discriminated on the basis of race, color, national origin, or sex, creating potential False Claims Act exposure when the company sought payment under contracts requiring compliance with federal non-discrimination rules.

The settlement is significant not only because of the dollar amount, but because it reflects a notable enforcement theory at the intersection of employment law, government contracting, and civil fraud.