EAST ST. LOUIS - Belleville disability lawyer Brent Gaines failed to convince U.S. Attorney Rachelle Crowe to pursue his claim that medical record manager Ciox charged Social Security $20 for records it should have provided free of charge.
U.S. District Judge Stephen McGlynn granted Crowe’s motion to dismiss the claim on May 6.
He gave Gaines and the state human services department 21 days to file briefs on whether he should retain jurisdiction over a claim that Ciox submitted false claims to the state.
Social Security paid the state’s $20 fees, but lawyers for Gaines claimed in January that the state can seek penalties even if it suffered no pecuniary damage.
Gaines sued Ciox in 2022 under a False Claims Act that Congress adopted to keep Civil War contractors honest and under a similar Illinois law.
Citizens whose suits lead to recovery receive payments.
Gaines’s complaint alleged that in 2022 Illinois legislators required providers to answer one record request under any title of Social Security free of charge.
His counsel, Robert King of St. Louis County, claimed Ciox submitted tens of thousands of claims to Social Security and the state.
King claimed the United States paid Ciox unaware of the falsity and fraudulence of its claims.
He added that the United States was damaged in a substantial amount to be determined at trial.
He asked the court to enjoin continued violations, to enter judgment three times the amount of damages the United States and Illinois have sustained, and to apply statutory penalties.
King also asked the court to award Gaines all amounts to which he is entitled.
Proceedings remained under seal while the government decided whether to intervene.
Last December, assistant U.S. attorney James Cutchin notified McGlynn that the government elected to intervene for the purpose of dismissing the complaint.
Cutchin claimed that when the government intervenes it may proceed with an action, settle it over an objection or dismiss it over an objection.
He added that when the government intervenes the person who brought the action remains a nominal party whose acts do not bind the government.
“After investigation of this matter the government has determined that dismissal of the action as to the United States is warranted,” he wrote.
Cutchin claimed dismissal was commensurate with the public interest and the matter didn’t warrant continued expenditure of government resources to pursue.
He claimed Gaines intended to proceed without the government, and accordingly the complaint should be dismissed as to the government.
Cutchin sealed the motion but moved to unseal the file.
McGlynn unsealed the complaint and Cutchin’s notice.
Illinois Attorney General Kwame Raoul notified McGlynn that the state declined to intervene.
Gaines opposed dismissal in January, claiming Cutchin failed to offer any explanation.
King claimed that while the government’s views are entitled to substantial deference, it offered no view to which the court or Gaines might defer.
He claimed Gaines asked the government to share its reasoning, and the Government declined to offer any insight.
He also claimed the government’s view was all the more notable given the state declined to intervene or join the motion to dismiss.
He added that there was little reason to believe the government’s discovery obligations would be unduly burdensome.
Cutchin responded that the government need not argue why the burdens of continued litigation outweigh its benefits.
He claimed that when a party proceeds, the government must monitor pleadings, attend hearings, participate in motions and respond to discovery requests.
He claimed the government may seek dismissal even if a case has potential merit.
McGlynn found he gave Gaines an opportunity to be heard by filing a response to the motion and that was all the False Claims Act required.
David Nelson of Belleville, Matthew Armstrong of Fort Lauderdale, and Stuart Cochran of Dallas represented Gaines along with King.