United States ex rel. Lupo v. Quality Assurance Services, Inc.

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS PLAINTIFF/RELATOR’S FIRST AMENDED COMPLAINT

Defendants Quality Assurance Services, Inc. (“QAS”), Glenn Russell Deacon, Glenn *1024 Russell Deacon II, Susan Deacon, and Shelly Becker (collectively, “Defendants”) move the court to dismiss the first amended complaint (“FAC”) of Relator Erin Hayes Lupo for failure to state a claim. (Doc. No. 18.) Relator opposes the motion. (Doc. No. 19.) The court finds the matter appropriate for decision without oral argument pursuant to Civil Local Rule 7.1(d)(1). For the following reasons, the court grants the motion in part and denies the motion in part.

BACKGROUND

QAS is a California corporation that contracts to perform inspections and diagnostic testing on medical equipment for hospitals and other health care providers. (Doc. No. 13 ¶¶ 6, 17.) The individual defendants are all shareholders of QAS. (Id. ¶¶ 7-10.) Relator worked at QAS for approximately eight years, including as office manager. (Id. ¶¶ 5,12.)

On September 16, 2016, Relator filed the FAC, alleging six counts: (1) substantive violations of the False Claims Act (“FCA”), 31 U.S.C. § 3729 (a)(1); (2)…