UNITED STATES EX REL. STEPHEN GUGENHEIM; STATE OF NORTH CAROLINA EX REL. STEPHEN GUGENHEIM, Plaintiffs - Appellants, v. MERIDIAN SENIOR LIVING, LLC; MERIDIAN SENIOR LIVING SERVICES, LLC; CHARLES E. TREFZGER, JR.; WP-ALBEMARLE HEALTH HOLDINGS, LLC; BURLINGTON AL HOLDINGS I, LLC; TAYLORSVILLE HOUSE, LLC; WP-NEWLAND HEALTH HOLDINGS, LLC; WP-WINDSOR HEALTH HOLDINGS, LLC; LELAND HOUSE, LLC; WP-YANCEYVILLE HEALTH HOLDINGS, LLC; HICKORY HEALTH INVESTORS, LLC; WP-HAYESVILLE HEALTH HOLDINGS, LLC; CHI HOLDINGS, LLC; DANBY HOUSE, LLC; WP-WINSTON SALEM HEALTH HOLDINGS, LLC; COUNTRY TIME INN, LLC; WP-GASTONIA HEALTH HOLDINGS, LLC; GATES HOUSE, LLC; GREENSBORO AL HOLDINGS, LLC; GREENSBORO OPCO HOLDINGS, LLC; GREENSBORO HEALTH HOLDINGS, LLC; FUQUAY-VARINA HEALTH HOLDINGS, LLC; HAYWOOD HEALTH HOLDINGS, LLC; AHOSKIE HOUSE, LLC; SKYLAND HOUSE, LLC; CLAYTON HEALTH HOLDINGS, LLC; MACON HEALTH HOLDINGS, LLC; MINT HILL HEALTH HOLDINGS, LLC; WP-CHARLOTTE HEALTH HOLDINGS, LLC; CHARLOTTE HEALTH HOLDINGS, LLC; MITCHELL HOUSE ONE, LLC; WEST END HOLDINGS, LLC; CASTLE HAYNE AL HOLDINGS, LLC; NEW HANOVER HOUSE, LLC; RVHI, LLC; RV ASSISTED LIVING, LLC; SHI-ORANGE, LLC; GRANTSBORO OPCO HOLDINGS, LLC; BURGAW HEALTH HOLDINGS; WP-CLINTON HEALTH HOLDINGS, LLC; ROSE TARA HOLDINGS, LLC; WP-BREVARD HEALTH HOLDINGS, LLC; CARY HEALTH HOLDINGS, LLC; WP-WENDELL HEALTH, LLC; WP-RALEIGH HEALTH, LLC; ZHI, LLC; WILSON HOUSE, LLC; WP-BURNSVILLE HEALTH HOLDINGS, LLC; AFFINITY LIVING GROUP, LLC, Defendants - Appellees., 36 F.4th 173


Summary

HOLDINGS: [1]-In a False Claims Act case, where plaintiff claimed that adult care facility owners violated a a North Carolina Medicaid billing regulation, and did so knowingly, the policy and related guidance from NC Medicaid were sufficiently ambiguous to foreclose the possibility of proving scienter based solely on the clarity of the regulation; [2]-The district court appropriately granted defendants summary judgment on plaintiff's claims because there was no issue of material fact as to whether defendants acted with scienter.