United States of America v. Planned Parenthood Federation of America Inc

District Court, N.D. Texas·Decided July 13, 2022·No. 2:21-cv-00022·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS NOR Ty DISTRICT AMARILLO DIVISION RN DIST □□ □□□□□ FE I] EN OP □□□ □□ UNITED STATES OF AMERICA, et al., § JUL 13 § CLERK ' 2 lke inti ; DIST pp. Plaintiffs, “AR Our ST § 2:21-CV-022-Z § PLANNED PARENTHOOD FEDERATION — § OF AMERICA, INC., et al., § § Defendants. § MEMORANDUM OPINION & ORDER Before the Court is Defendants’! Motion for Reconsideration, or, in the Alternative, Certification for Interlocutory Appeal Pursuant to 28 U.S.C. § 1292(b) (“Motion”) (ECF No. 82), filed on May 24, 2022. Having considered the parties’ briefing and relevant law, the Court finds Defendants’ Motion should be and hereby is DENIED. BACKGROUND The Court’s earlier Order describes the facts and circumstances leading to this lawsuit and the reasons for granting in part and denying in part Defendants’ Motions to Dismiss Relator Alex Doe’s and the State of Texas’s (“Plaintiffs” collectively) Complaints. See generally ECF No. 71. Rather than reiterate the history of this case and the Court’s reasoning, the Court will include only the information necessary to rule on the instant Motion. Relator filed the instant gui tam action against Defendants, seeking civil penalties and treble damages under the False Claims Act (“FCA”), the Texas Medicaid Fraud Prevention

' Defendants are Planned Parenthood Federation of America, Inc., Planned Parenthood Gulf Coast, Inc., Planned Parenthood of Greater Texas, Inc., Planned Parenthood of South Texas, Inc., Planned Parenthood of Cameron County, Inc., and Planned Parenthood of San Antonio, Inc. The Court will refer to all Planned Parenthood entities as “Defendants” collectively.

Act (“TMFPA”), and the Louisiana Medical Assistance Programs Integrity Law (““LMAPIL”) on behalf of the United States, Texas, and Louisiana. See generally ECF No. 2. Texas elected to intervene in the suit, the United States declined to intervene, and Louisiana neither elected nor declined to intervene. See generally ECF Nos. 16, 18. On February 14, 2022, Defendants moved to dismiss Plaintiffs’ Complaints for improper service of process and on a variety of grounds. See generally ECF Nos. 44, 46, 48, 50. Parties informed the Court service was properly affected and, therefore, the Court denied the Motions to Dismiss on that ground. ECF No. 69. The Court then considered the Parties’ written arguments, concluding Defendants’ Motions to Dismiss must be granted in part and denied in part. See generally ECF No. 71. The Court dismissed Relator’s federal conspiracy to commit health-care fraud claim and denied dismissal of Plaintiffs’ remaining claims. /d. In particular, the Court found the following: 1. Plaintiffs’ Complaints comply with Federal Rule of Civil Procedure 12(b)(6). Relator plausibly pleads the elements of a “reverse false claim” under the FCA, TMFPA, and LMAPIL, and Texas plausibly pleads the elements of a “reverse” TMFPA violation. Id. at 4-16. 2. Plaintiffs’ Complaints comply with Federal Rule of Civil Procedure 9(b), as Plaintiffs plausibly plead fraud with particularity. /d. at 17-23. 3. The FCA’s, TMFPA’s, and LMAPIL’s “public disclosure bars” do not prohibit Counts I-IV of Relator’s Complaint because Relator’s Complaint is not based on publicly disclosed information and Relator qualifies as an “original source.” Jd. at 23-29. 4, Judicial estoppel does not bar Texas’s “reverse false claim.” /d. at 29-32. 5. TMFPA’s “government-action bar” does not require dismissal of Plaintiffs’ claims under Texas law. /d. at 33-34. ANALYSIS Defendants now ask the Court to reconsider on three grounds. See generally ECF No. 82. Defendants assert: (1) “Defendants’ alleged obligation to repay was contingent on future events, Simoneaux controls and mandates dismissal of Plaintiffs’ reverse FCA and TMFPA claims”; (2)

Court should reconsider its ruling on scienter and dismiss Plaintiffs’ reverse FCA/TMFPA claims for failure to plead that essential element’; and (3) “the Court should reconsider its decision as to the public disclosure bar” as the Court’s decision “mistakenly relies on an incorrect legal standard contrary to Fifth Circuit precedent,” and because “Relator has pled no details regarding his alleged disclosures to the government” to qualify as an “original source.” ECF No. 83 at 7-10. In response, Plaintiffs note “Defendants’ Motion contains no new facts, evidence, or argument demonstrating that the Court’s ruling denying Defendants’ Motions to Dismiss was erroneous.” ECF No. 95 at 6. Alternatively, Defendants request the Court certify four questions for interlocutory appeal under 28 U.S.C. § 1292(b). ECF No. 83 at 25. The Court has received Defendants’ Reply — ECF No. 110 — and the Motion is ripe for the Court’s decision. A. District Courts Grant Motions to Reconsider in Limited Circumstances The Federal Rules of Civil Procedure do not officially provide for a motion for reconsideration. Shepherd v. Int'l Paper Co., 372 F.3d 326, 328 n.1 (Sth Cir. 2004). A request to reconsider an interlocutory order has been construed to fall under Federal Rule of Civil Procedure 54(b). Lavespere v. Niagara Mach. & Tool Works, Inc., 910 F.2d 167, 185 n.92 (Sth Cir. 1990), abrogated on other grounds by Little v. Liquid Air Corp., 37 F.3d 1069, 1075 n.14 (Sth Cir. 1994) (en banc). Rule 54(b) states: “any order or other decision, however designated, that adjudicates fewer than all the claims or rights and liabilities of fewer than all the parties . . . may be revised at any time before the entry of a judgment adjudicating all the claims.” “Although the precise standard for evaluating a motion to reconsider under Rule 54(b) is unclear, whether to grant such a motion rests within the discretion of the court.” Dos Santos v. Bell Helicopter Textron, Inc., 651 F. Supp. 2d 550, 553 (N.D. Tex. 2009). “[C]Jonsiderations similar to those under Rule 59 and 60 inform the Court’s analysis.” /d. The Fifth Circuit has held Rule 54(b)

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United States of America v. Planned Parenthood Federation of America Inc, (N.D. Tex. 2022).

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