Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_15-cv-04928/USCOURTS-cand-5_15-cv-04928-0/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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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, NEW JERSEY, NEW MEXICO, 

NEW YORK, NORTH CAROLINA, 

OKLAHOMA, RHODE ISLAND, 

TENNESSEE, TEXAS, VIRGINIA, 

WASHINGTON, and THE DISTRICT OF 

COLUMBIA ex rel W. CHRISTIAN 

HOYER and PEGGY RYAN,

Plaintiffs,

v.

HIND HEALTH CARE, INC., TEIKOKU 

SEIYAKU CO., LTD. d/b/a TEIKOKU 

PHARMA USA, INC., LARRY 

CALDWELL, and BRADLEY GALER,

Defendants.

Case No. 5:15-cv-04928-HRL 

*SEALED*

ORDER FOR REASSIGNMENT TO A 

DISTRICT JUDGE

REPORT AND RECOMMENDATION

This is a qui tam action for alleged violation of the federal False Claims Act, 31 U.S.C. §

3729, et seq., as well as the false claims laws of a number of states (Plaintiff States) and the 

District of Columbia. The United States, Plaintiff States, and the District of Columbia have filed 

notices of their decisions not to intervene in this action. Accordingly, this matter stands poised to 

Case 5:15-cv-04928-LHK Document 14 Filed 10/27/16 Page 1 of 4
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United States District Court

Northern District of California

be unsealed so that the complaint can be served upon the defendants. However, the Plaintiff States 

point out that under Maryland law, where (as here) the State of Maryland declines to intervene in 

an action, then “before unsealing the complaint, the court shall dismiss the action.” Md. Health 

Gen. § 2-604(a)(7). Thus, in their Notice of Election to Decline Intervention, the Plaintiff States 

request an order dismissing without prejudice all claims asserted on behalf of the State of 

Maryland. Absent full consent of all parties to proceed before a magistrate judge, however, the 

undersigned lacks jurisdiction to issue dispositive orders, and any such order issued without full 

consent would be null and void. See 28 U.S.C. § 636.

Accordingly, this court orders that this matter be reassigned to a district judge, along with 

the recommendations that:

1. The United States’ proposed order re its Notice of Election to Decline Intervention 

(Dkt. 7) be entered as an order of the court and unsealed as of the date the seal of 

this matter is lifted;

2. The Plaintiff States’ and District of Columbia’s proposed order re their Notice of 

Election to Decline Intervention (Dkt. 10) be entered as an order of the court and 

unsealed as of the date the seal of this matter is lifted;

3. The relators’ complaint (Dkt. 1), the Order Setting Initial Case Management 

Conference and ADR Deadlines (Dkt. 2), the United States’ and the Plaintiff 

States’/District of Columbia’s notices of election to decline intervention (Dkts. 7, 

9), and this Order and Report and Recommendation be unsealed and served upon 

the defendants.

4. The Clerk’s Notice re Deadline for Consent or Declination to Proceed Before a 

United States Magistrate Judge (Dkt. 11) and the Consent/Declination forms (Dkts. 

12 and 13) be unsealed as of the date the seal of this matter is lifted.

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

the date the newly assigned judge enters an unsealing order.

Any party may serve and file objections to this Report and Recommendation within 

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United States District Court

Northern District of California

fourteen days after being served. Fed. R. Civ. P. 72.

Dated: October 27, 2016

HOWARD R. LLOYD

United States Magistrate Judge

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United States District Court

Northern District of California

5:15-cv-04928-HRL Notice sent by U.S. Mail to:

Kimberly Friday

Assistant United States Attorney

U.S. Attorney’s Office

450 Golden Gate Avenue, Box 36055

San Francisco, CA 94102

Lora Fox Martin

California Deputy Attorney General

Bureau of Medi-Cal Fraud and Elder Abuse

1455 Frazee Road, Suite 315

San Diego, CA 92108

Jillian L. Estes

4830 W. Kennedy Blvd.

One Urban Centre, Suite 550

Tampa, FL 33609

Michael A. Hirst

Hirst Law Group, P.C.

200 B Street, Suite A

Davis, CA 95616

Case 5:15-cv-04928-LHK Document 14 Filed 10/27/16 Page 4 of 4