Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_14-cv-01511/USCOURTS-cand-3_14-cv-01511-3/pdf.json

Parties Involved:
Covidien, Inc.
Defendant
Erin Hayes
Plaintiff
Richard Ponder
Plaintiff
State of California
Plaintiff
United States of America
Plaintiff

Document Text:

STIPULATION AND REQUEST 

FOR ENLARGEMENT OF TIME AND PARTIAL LIFT OF SEAL; PROPOSED ORDER 

C 14-1511 EDL 

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BENJAMIN C. MIZER 

Principal Deputy Assistant Attorney General 

MELINDA HAAG (CSBN 132612) 

United States Attorney 

ALEX G. TSE (CSBN 152348) 

Chief, Civil Division 

MELANIE L. PROCTOR (CSBN 228971) 

Assistant United States Attorney 

450 Golden Gate Avenue, Box 36055 

San Francisco, California 94102 

Telephone: (415) 436-6730 

Fax: (415) 436-6748 

e-mail: melanie.proctor@usdoj.gov

MICHAEL D. GRANSTON 

TRACY L. HILMER 

AMY D. KOSSAK 

Attorneys, Civil Division 

United States Department of Justice 

 Ben Franklin Station, Box 261 

 Washington, D.C. 20044 

 Telephone: (202) 616-2856 

 Fax: (202) 305-7797 

 e-mail: Amy.D.Kossak@usdoj.gov 

Attorneys for the United States of America 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

UNITED STATES OF AMERICA and the 

STATE OF CALIFORNIA ex rel. 

ERIN HAYES and RICHARD PONDER, 

 Plaintiffs, 

 v. 

COVIDIEN, INC., a corporation., 

 Defendant. 

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CASE NO. C 14-1511 EDL 

STIPULATION AND REQUEST FOR 

ENLARGEMENT OF TIME AND

AMENDMENT TO PARTIAL LIFT 

ORDER; PROPOSED ORDER 

FILED UNDER SEAL 

)

The United States of America, the State of California, and ERIN HAYES and RICHARD 

PONDER, as Relators, through their undersigned counsel of record, hereby stipulate and request 

that the Court enlarge until December 4, 2015, the period during which the United States may 

Case 3:14-cv-01511-VC Document 20 Filed 06/03/15 Page 1 of 6
STIPULATION AND REQUEST 

FOR ENLARGEMENT OF TIME AND PARTIAL LIFT OF SEAL; PROPOSED ORDER 

C 14-1511 EDL 

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elect to intervene in the above-captioned False Claims Act (“Federal FCA”), 31 U.S.C. §§ 3729-

3733 qui tam action or notify the Court that it declines to do so, during which period the 

complaint and other filings shall remain under seal and not be served on the defendant. 

1. This request is being filed ex parte pursuant to Civ. L.R. 7-10 and the Federal 

FCA. It is not being served on Defendant, as the case is under seal and Defendant has not yet 

been served in this case. This filing is being served on Relators. 

2. This action was filed on April 1, 2014, under the qui tam provisions of the Federal 

FCA. Among other things, these provisions authorize private parties (known as relators) to file 

lawsuits alleging FCA violations on behalf of the United States. 41 U.S.C. § 3730(b). 

3. In this action, Relators allege, inter alia, that Defendant (1) engaged in unlawful 

kickback schemes and (2) unlawfully markets its endo-arterial products for off-label use. 

4. Under the FCA, the qui tam relator is required to file the complaint under seal and 

serve it on the United States, but not on the defendant, so that the government may investigate 

the allegations in the complaint and make an informed decision whether to intervene in the 

action before the defendant is made aware of the case. The FCA provides that the complaint 

“shall remain under seal for at least 60 days, and shall not be served on the defendant until the 

court so orders.” 31 U.S.C. § 3730(b)(2). The qui tam provisions of the Federal FCA expressly 

contemplate that motions for extensions of the 60-day period will be permitted upon a showing 

of “good cause.” 31 U.S.C. § 3730(b)(2) and (3). 

5. In the present case, Relators completed service of their written disclosure of 

material evidence and the Complaint on the United States Attorney on April 4, 2014. The Court 

has extended the seal twice, and it currently expires on June 4, 2015. 

6. The United States and California have been actively investigating this case. Since 

the Complaint was filed, the United States and California have assembled a team of investigators 

and attorneys, interviewed the relators, served a subpoena upon Defendant, and have begun to 

receive documents from Defendant in response to that subpoena. Defendant’s production of 

responsive documents, and the government’s review of those documents, is ongoing. The 

Case 3:14-cv-01511-VC Document 20 Filed 06/03/15 Page 2 of 6
STIPULATION AND REQUEST 

FOR ENLARGEMENT OF TIME AND PARTIAL LIFT OF SEAL; PROPOSED ORDER 

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United States estimates that approximately six additional months will be necessary to complete 

its investigation and make an intervention decision. 

7. Accordingly, the Government seeks a six-month extension of the seal and 

intervention deadlines in the present case until December 4, 2015. During the extension period, 

if granted, the Government will continue to diligently investigate Relator’s allegations. 

8. Due to Civil L.R. 79-5, which provides that sealed documents are automatically 

unsealed ten years from the date the case is closed, the United States is reluctant to provide more 

specific information about its investigation in writing. If the Court so requests, the undersigned 

government counsel will provide oral information about the government’s investigation in 

camera, pursuant to 31 U.S.C. § 3730(b)(3). 

 9. The seal has been partially lifted to allow the United States to share the complaint 

with certain state entities, other relators and their counsel, and United States District Courts 

presiding over any other qui tam complaints asserting the same or similar allegations against 

Defendant and/or its corporate family members. The United States has now determined that, to 

more expeditiously investigate the allegations, it must have a full and open dialogue with 

Defendant regarding the allegations. Accordingly, the United States requests that the partial 

lifting of the seal in this case be expanded to include Defendant. Partial lifting of the seal will 

permit the United States, at its option, to disclose the existence of the qui tam suit, as well as the 

Relators’ complaint and evidence, to Defendant. The United States asks that the case remain 

under seal for all other purposes. 

DATED: May 27, 2015 BENJAMIN C. MIZER 

 Principal Deputy Assistant Attorney General 

MELINDA HAAG 

 United States Attorney 

 /s/Melanie L. Proctor________ 

 MELANIE L. PROCTOR 

 Assistant United States Attorney 

 

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STIPULATION AND REQUEST 

FOR ENLARGEMENT OF TIME AND PARTIAL LIFT OF SEAL; PROPOSED ORDER 

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MICHAEL D. GRANSTON 

TRACY L. HILMER 

AMY D. KOSSAK 

Attorneys, Civil Division 

United States Department of Justice 

 Ben Franklin Station, Box 261 

 Washington, D.C. 20044 

 Telephone: (202) 616-2856 

 Fax: (202) 305-7797 

 e-mail: Amy.D.Kossak@usdoj.gov 

Attorneys for the United States of America 

DATED: May 21, 2015 KAMALA HARRIS 

 Attorney General for the State of California 

/s/Siobhan Franklin_____ 

SIOBHAN FRANKLIN

Deputy Attorney General

California Attorney General’s Office

Bureau of Medi-Cal Fraud and Elder Abuse

1455 Frazee Road, Suite 315

San Diego, CA 92108

Telephone: 619-688-6071

Siobhan.Franklin@doj.ca.gov

 Attorneys for the State of California 

 

DATED: May 21, 2015 /s/Christian Schrieber_____ 

 CHRISTIAN SCHRIEBER 

 Chavez & Gertler, LLP 

 42 Miller Avenue 

 Mill Valley, CA 94941 

 Attorneys for Relators 

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STIPULATION AND REQUEST 

FOR ENLARGEMENT OF TIME AND PARTIAL LIFT OF SEAL; PROPOSED ORDER 

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[PROPOSED] ORDER 

IT IS HEREBY ORDERED THAT: 

1. The United States and the State of California shall have up to and including 

December 4, 2015, to inform the Court of their decisions whether to intervene in this matter. 

2. The United States is permitted to disclose, in its discretion, in whole or in part, 

this order, the Complaint (and any amended complaints that relator(s) may file in this case), and 

the allegations or nature of the claims asserted in the Complaint (and any amended complaints 

that relator(s) may file in this case) to Defendant and its counsel 

3. This matter shall otherwise remain under seal until further order of the Court. 

 

IT IS SO ORDERED. 

Dated: June 3, 2015 ______________________________ 

 HON. ELIZABETH D. LAPORTE 

 United States Magistrate Judge 

Case 3:14-cv-01511-VC Document 20 Filed 06/03/15 Page 5 of 6
UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA and the

STATE OF CALIFORNIA ex rel.

ERIN HAYES and RICHARD PONDER,

Plaintiff,

 v.

COVIDIEN, INC., a corporation,

Defendant. /

Case No. C 14-01511 EDL 

CERTIFICATE OF SERVICE

I, the undersigned, hereby certify that I am an employee in the Office of the Clerk, U.S. District

Court, Northern District of California.

That on June 3, 2015, I SERVED a true and correct copy(ies) of the attached order, by placing

said copy(ies) in a postage paid envelope addressed to the person(s) hereinafter listed, by

depositing said envelope in the U.S. Mail, or by placing said copy(ies) into an inter-office

delivery receptacle located in the Clerk's office.

Melanie L. Proctor

Assistant United States Attorney

450 Golden Gate Avenue, Box 36055

San Francisco, California 94102

Siobhan Franklin 

California Attorney General’s Office

Bureau of Medi-Cal Fraud and Elder Abuse

1455 Frazee Road, Suite 315

San Diego, CA 92108

(GOVERNMENT’S COUNSEL TO SERVE APPROPRIATE PARTIES NOT LISTED

ON THIS CERTIFICATE OF SERVICE.)

Dated: June 3, 2015

Richard W. Wieking, Clerk

By: _____________________ 

Stephen Ybarra, Deputy Clerk

Case 3:14-cv-01511-VC Document 20 Filed 06/03/15 Page 6 of 6