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Second Circuit Expands DOJ Power In Anti-Kickback Statute

By Robert J. Anello and Richard F. Albert and Emily Smit
March 01, 2025

In recent years, the Department of Justice has wielded the Anti-Kickback Statute (AKS) to exact steep penalties from corporate actors and individuals alike for the improper exchange of something of value to generate healthcare business funded by a federal program.

When coupled with the False Claims Act (FCA), the AKS turns into a potent civil enforcement tool that carries many of the same draconian penalties as criminal enforcement, achieved via a less demanding path.

A recent decision by the Second Circuit joins other circuits in expanding liability for defendants by interpreting the AKS to require that only one purpose, rather than the sole or primary purpose, of a payment is to induce the purchase of a federally reimbursable healthcare product. United States ex rel. Camburn v. Novartis Pharms. Corp., 124 F.4th 129, 136 (2d Cir. 2024).

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