Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_15-cv-04928/USCOURTS-cand-5_15-cv-04928-1/pdf.json

Nature of Suit Code: 375
Nature of Suit: False Claims Act
Cause of Action: 31:3729 False Claims Act

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Case No. 15-LHK-04928 

ORDER ADOPTING REPORT AND RECOMMENDATION

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United States District Court

Northern District of California

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

UNITED STATES AND STATES OF 

CALIFORNIA, COLORADO, 

CONNECTICUT, DELAWARE, FLORIDA, 

GEORGIA, HAWAII, ILLINOIS, 

INDIANA, IOWA, LOUISIANA, 

MARYLAND, MASSACHUSETTS, 

MICHIGAN, MINNESOTA, MONTANA, 

NEVADA, et al.,

Plaintiffs,

v.

HIND HEALTH CARE, INC., et al.,

Defendants.

Case No. 15-CV-04928-LHK 

ORDER ADOPTING REPORT AND 

RECOMMENDATION

Re: Dkt. No. 14

Relators W. Christian Hoyer and Peggy Ryan (“Relators”) filed this qui tam action against 

Hind Health Care, Inc. (“Hind”), Teikoku Seiyaku Co., Ltd. (“Teikoku”), Larry Caldwell, and 

Bradley Galer (collectively, “Defendants”), on behalf of the states of California, Colorado, 

Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Louisiana, Maryland, 

Massachusetts, Michigan, Minnesota, Montana, Nevada, New Jersey, New Mexico, New York, 

North Carolina, Oklahoma, Rhode Island, Tennessee, Texas, Virginia, and Washington

(collectively, “Plaintiff States”); the United States; and the District of Columbia for alleged 

Case 5:15-cv-04928-LHK Document 16 Filed 01/16/17 Page 1 of 4
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Case No. 15-LHK-04928 

ORDER ADOPTING REPORT AND RECOMMENDATION

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United States District Court

Northern District of California

violation of the federal False Claims Act, 31 U.S.C. § 3729, et seq., as well as the false claims 

laws of each of the Plaintiff States and the District of Columbia. The case was referred to 

Magistrate Judge Howard Lloyd. The Plaintiff States, the District of Columbia, and the United 

States have declined to intervene in the action. ECF Nos. 7, 10. Thus, Relators are currently 

pursuing this action on behalf of the United States, the Plaintiff States, and the District of 

Columbia.

Because the United States, the Plaintiff States, and the District of Columbia have declined 

to intervene in this action, Judge Lloyd issued a Report and Recommendation on October 27, 2016

that recommended unsealing the case. Ordinarily, a Report and Recommendation is filed and 

served on all parties. However, because the Report and Recommendation was filed under seal, the 

Report and Recommendation was not served on Defendants. Nevertheless, the Magistrate Judge’s 

Report and Recommendation was filed on October 27, 2016, no objections have been filed, and

the time to file objections has expired. See FED. R. CIV. P. 72(b)(2).

Having reviewed the Report and Recommendation, as well as the record in this case, the 

court finds that the Report and Recommendation is well-founded in fact and in law and, therefore,

adopts the Report and Recommendation. In conformity with the Report and Recommendation, the 

Court makes the following rulings:

1. In accordance with the terms of the Maryland False Health Claims Act, Md. Code 

Ann., Health Gen, § 2-604(a)(7), the State of Maryland having declined to 

intervene in this matter, all claims asserted on behalf of the State of Maryland are 

hereby dismissed without prejudice.

2. The parties shall serve all pleadings and motions filed in this action, including 

supporting memoranda, upon the United States, the Plaintiff States, and the District 

of Columbia in accordance with 31 U.S.C. § 3730(c)(3) and the Certificate of

Service attached to the States’ Notice of Election to Decline Intervention, ECF No. 

10. The United States, the Plaintiff States, and the District of Columbia may order 

any deposition transcripts and are entitled to intervene in this action, for good 

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Case No. 15-LHK-04928 

ORDER ADOPTING REPORT AND RECOMMENDATION

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cause, at any time;

3. The parties shall serve all notices of appeal upon the United States;

4. Relators shall send all orders of this Court to the United States, the Plaintiff States, 

and the District of Columbia;

5. Should Relators or Defendants propose that this action be dismissed, settled, or 

otherwise discontinued, the Court will provide the United States with notice and an 

opportunity to be heard before ruling or granting its approval;

6. Should Relators or Defendants propose that this action on behalf of any of the 

Plaintiff States and/or the District of Columbia be dismissed, settled, or otherwise 

discontinued, Relators shall solicit and submit to the Court the written consent of 

each of the Plaintiff States and the District of Columbia before filing such proposal 

so that the Court may consider said consent(s) before ruling or granting its 

approval;

7. Any dismissal of this action, or any part of this action, shall be without prejudice as 

to any of the Plaintiff States and the District of Columbia, unless the state and/or 

the District of Columbia consents to dismissal with prejudice;

8. The Relators’ complaint, ECF No. 1, the Order Setting Initial Case Management 

Conference and ADR Deadlines, ECF No. 2, the United States’ and the Plaintiff 

States’/District of Columbia’s notices of election to decline intervention, ECF Nos. 

7, 9–10, the Report and Recommendation of Judge Howard Lloyd, ECF No. 14,

and the Order Reassigning Case, ECF No. 15, shall be unsealed as of January 16, 

2017 and served upon Defendants.

9. The Clerk’s Notice regarding the Deadline for Consent or Declination to Proceed 

Before a United States Magistrate Judge, ECF No. 11, and the forms regarding 

Consent/Declination to Proceed Before a Magistrate Judge, ECF Nos. 12–13, shall 

be unsealed as of January 16, 2017.

10. The seal of this matter shall be lifted as to all other matters occurring in this action 

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Case No. 15-LHK-04928 

ORDER ADOPTING REPORT AND RECOMMENDATION

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United States District Court

Northern District of California

after January 16, 2017.

IT IS SO ORDERED.

Dated: January 16, 2017

______________________________________

LUCY H. KOH

United States District Judge

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