Darrig ex rel. United States v. Medical Consultants Network, Inc.

MEMORANDUM **

Relator Michael Darrig appeals the district court’s grant of summary judgment in favor of defendant Medical Consultants Network, Inc. (“MCN”). Darrig brought suit under the False Claims Act (“FCA”), 31 U.S.C. § 3729 , alleging that MCN’s invoices to the Department of Labor failed to comply with the contracts between the two parties. The district court found that Darrig had not presented evidence to support an inference that MCN had acted with scienter, as required by the FCA, and therefore granted MCN’s motion for summary judgment. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we reverse.

The FCA “provides penalties for one who ‘knowingly presents ... a false or fraudulent claim’ to the government.” Wang v. FMC Corp., 975 F.2d 1412, 1415 (9th Cir.1992). To establish the required scienter, a relator must show that the defendant (1) has actual knowledge of the information; (2) acts in deliberate ignorance of the truth or falsity of the information; or (3) acts in reckless disregard of the truth or falsity of the information. Id. at 1420 . The district court in this case held that Darrig had presented no evidence of anything more than mistake or negligence…