United States of America v. S.M.R.T., LLC

BACKGROUND!

S.M.R.T. sells durable medical equipment and supplies to patients who utilize 6 || federally funded government healthcare programs. Compl., ECF No. 1, J 1-2. Cornelius McKay is the owner of S.M.R.T. Jd. at J 11. Randy Lazar began working for Defendants in 2016. Compl., ECF No. 1, 417. 9 || During his employment, Lazar discovered Defendants were exploiting Medicare and 10 || Medi-Cal “by: (1) misreporting customer data to qualify for funding to which they were entitled; and (2) billing government entities for supply orders that were never shipped.” Jd. at {f 18, 29-31, 35, 37. On September 17, 2017, after Lazar attempted to 13 || “educate Defendants and correct their wrongful practices,” Defendants terminated 14 || Lazar’s employment. Jd. at J 19. On January 5, 2018, Lazar ftled a civil lawsuit against McKay in the San Diego 16 || Superior Court, styled as Lazar v. McKay, San Diego Superior Court Case No. 37-2018- 17 || 00000738-CU-BC-CTL (the “State Court Action”). Compl., ECF No. 1, J 11. Lazar 18 || alleged claims for breach of contract, breach of the covenant of good faith and fair 19 || dealing, and…