Paul Lisenby v. Olympus Corporation of the Americas
CourtCourt of Appeals for the Third Circuit
Date FiledAugust 4, 2026
Docket25-1480
StatusPublished
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Full Opinion
PRECEDENTIAL
UNITED STATES COURT OF APPEALS
FOR THE THIRD CIRCUIT
____________
No. 25-1480
____________
PAUL LISENBY,
Appellant
v.
OLYMPUS CORP. OF THE AMERICAS; OLYMPUS
AMERICA INC.; GYRUS ACMI, INC.
____________
On Appeal from the United States District Court
for the Eastern District of Pennsylvania
(D.C. No. 5:24-cv-01803)
District Judge: Honorable Jeffrey L. Schmehl
____________
Submitted Pursuant to Third Circuit L.A.R. 34.1(a)
February 9, 2026
____________
Before: CHAGARES, Chief Judge, SCIRICA* and
RENDELL, Circuit Judges
*
The Honorable Anthony J. Scirica was unavailable to
participate in the decision in this case after submission to the
(Opinion Filed: August 4, 2026)
______________
OPINION OF THE COURT
____________
CHAGARES, Chief Judge.
Paul Lisenby worked as the Global Head of Product
Development for the defendants-appellees Gyrus ACMI, Inc.,
Olympus Corporation of the Americas, and Olympus America,
Inc. (together, “Olympus”),1 which are United States
subsidiaries of a Japanese medical device company. Olympus
sells medical devices to the United States government and
receives millions of dollars in federal awards every year. Over
a two-week period, Lisenby raised concerns that Olympus had
violated U.S. Food and Drug Administration (“FDA”)
regulations with respect to design quality and product testing.
Olympus eliminated Lisenby’s position shortly thereafter.
Lisenby filed suit against Olympus, alleging, as relevant here,
that Olympus had retaliated against him in violation of the
False Claims Act (“FCA” or “Act”), 31 U.S.C. § 3730(h).
The District Court granted Olympus’s motion to dismiss
the Amended Complaint. The court noted that the allegations
merits panel. This opinion is filed by a quorum of the panel
pursuant to 28 U.S.C. § 46(d) and 3d Cir. I.O.P. 12.1(b).
1
The defendants-appellees are wholly-owned subsidiaries of
Olympus Corporation, all of which are part of a single
enterprise. For ease of reference, we will refer to the
defendants-appellees collectively as “Olympus.”
2
in the Amended Complaint did not connect Lisenby’s concerns
about FDA regulatory violations to the submission of false
claims for payment to the federal government. The District
Court thus concluded that Lisenby failed to allege that he had
engaged in protected conduct under the “other efforts” prong
of the FCA’s anti-retaliation provision.
We have held that Congress’s 2009–2010 amendments
to the FCA expanded the scope of the FCA’s anti-retaliation
provision to include “other efforts” to stop violations of the
Act. United States ex rel. Ascolese v. Shoemaker Constr. Co.,
55 F.4th 188, 194–95 (3d Cir. 2022). But we have not yet
considered what constitutes protected conduct under the “other
efforts” prong of the FCA’s anti-retaliation provision, 31
U.S.C. § 3730(h)(1). As explained below, we hold that a
plaintiff’s actions constitute protected conduct under the “other
efforts” prong of § 3730(h)(1) when they are motivated by an
objectively reasonable belief that the employer has submitted,
or will submit, false or fraudulent claims for payment to the
federal government. The Amended Complaint at issue here
lacks allegations of any such belief. We will therefore affirm
the District Court’s order.
I.2
2
We take these facts from the Amended Complaint. At the
motion to dismiss stage, we accept all factual allegations as
true and construe them in the light most favorable to the
plaintiff. Newark Cab Ass’n v. City of Newark, 901 F.3d 146,
151 (3d Cir. 2018).
3
Olympus sells medical devices to the federal
government, including the Department of Veteran Affairs
(“VA”). The VA is Olympus’s largest customer in the United
States, and Olympus America, Inc. receives more than $85
million in federal awards each year. Olympus also sells its
products to hospitals and other entities that receive Medicare
and Medicaid reimbursements. Lisenby worked as Olympus’s
Global Head of Product Development between May 2022 and
March 2024. In this position, Lisenby was not responsible for
investigating fraud or compliance issues. He was, however,
knowledgeable about the requirements for FDA approval of
medical devices.
During an approximately two-week period in early
2024, Lisenby complained to other Olympus employees that
Olympus was violating FDA regulations.3 Lisenby’s concerns
stemmed from his investigation of the failure of an Olympus
product called the Quick-Clip Pro 2 (“QCP2”). Lisenby
discovered systemic issues in Olympus’s “design approach and
quality management system related to already-sold products,”
including “inadequate sample test sizes, insufficient design
validations, inadequate supplier controls, [and] a lack of test
method validations.” Joint Appendix (“App.”) 7. Lisenby also
found a lack of quality management controls and testing to
ensure that the product was safe for clinical use in patients.
3
The Amended Complaint alleges that Lisenby raised other
concerns during his tenure at Olympus. On appeal, Lisenby
“limits the issue of protected activity to his efforts to stop
systemic FDA violations in the weeks leading up to his
termination.” Lisenby Br. 5 n.2. We will therefore consider
only the allegations with respect to Lisenby’s actions between
January 21, 2024, and February 13, 2024.
4
Lisenby’s concerns thus focused on “design quality and non-
compliant product testing issues required by FDA regulations.”
App. 6. Given these issues, Lisenby “believed that if Olympus
were to sell QCP2 in its current state, it would be
misrepresenting data to the FDA to obtain approval, as it had
done in the past.” App. 7.
Lisenby first began sharing his concerns in late January
2024. These communications were made outside of his chain
of command. Lisenby first met with Gabriela Kaynor, the
Global Head of Olympus’s Therapeutic Solutions Division at
that time. He told Kaynor about Olympus’s “systemic failures
to comply with FDA testing and regulatory standards in its
product development process [and] inadequate training of
engineers to follow FDA regulatory and testing standards.”
App. 7. He also shared his “serious concerns” about
“Olympus’[s] medical devices that had already been launched
in the market that did not comply [with] FDA regulatory
standards and had been shown to cause patient harm.” App. 7–
8. A few days later, Lisenby discussed the same concerns in a
meeting with Mike Callaghan, the Vice President and General
Manager of the GI Endo-Therapy Business Unit. Callaghan
told Lisenby that selling non-compliant products was “not his
call” because the responsibility rested with a quality control
department in Japan. App. 8.
Lisenby then emailed Andre Roggan, his direct
supervisor, and Tomohisa Sakurai, Olympus’s Deputy Chief
Technology Officer (“CTO”), about a design methodology
called Design for Six Sigma (“DFSS”). He noted that quality
and compliance issues existed in Japan, Europe, and the United
States. Lisenby suggested that Olympus could use DFSS to
address these systemic issues in product design procedure,
5
comply with FDA requirements, and manage patient safety
risks. Lisenby further stated that he “believe[d] DFSS would
ultimately address the major sticking points [Olympus was]
having with the FDA.” App. 9.
Lisenby also shared his concerns at the CTO
Management Committee meetings between January 29, 2024,
and February 2, 2024. He added a session about DFSS to the
agenda, during which he proposed DFSS as a possible solution
to the systemic issues that he had observed. He explained how
DFSS was “a way to eliminate [Olympus’s] systemic FDA
compliance failures and ensure products were designed to
address patient safety risks.” App. 9–10. The other meeting
attendees acknowledged Lisenby’s findings but informed him
that he needed Roggan’s approval to implement his proposed
changes. Roggan later told Lisenby that a research and
development committee should pre-screen DFSS.
A little over a week after the CTO meetings, Lisenby
met with Eric Rainis, the Global Vice President of Quality
Design and Assurance. Lisenby told Rainis about Olympus’s
“inadequate complaint handling system” and how Olympus
lacked adequate product testing to ensure patient safety. App.
10. He also discussed his concern that Olympus did not have
a quality assurance entity in Japan to ensure compliance with
FDA regulatory standards. Rainis agreed with Lisenby’s
concerns but explained that procedural issues in Japan were not
within the scope of his responsibilities. The next day, Lisenby
met with Todd Brill, the Senior Vice President of Regulatory
Affairs. Lisenby discussed his concerns about Olympus’s
“failure to comply with FDA standards” that, in turn,
“impacted patient safety and caused patient harm.” App. 11.
He again proposed using DFSS as a possible solution.
6
The day after Lisenby met with Brill, Roggan told
Lisenby that his position had been eliminated. Olympus did
not eliminate any other positions during this time. Lisenby
subsequently filed a lawsuit against Olympus, asserting a
retaliation claim under the False Claims Act as well as claims
under the Pennsylvania Whistleblower Law and Florida
Private Whistleblowers Act. Olympus moved to dismiss the
Complaint for failure to state a claim, and Lisenby amended
the Complaint. Olympus then filed another motion to dismiss
under Federal Rule of Civil Procedure 12(b)(6).
The District Court granted Olympus’s motion,
dismissing both the FCA retaliation claim and the state law
claims.4 The District Court noted that this Court has not yet
considered what constitutes protected conduct under the “other
efforts” prong of the FCA’s anti-retaliation provision. The
court thus concluded that a plaintiff “must demonstrate a nexus
between his actions and that his employer knowingly
submitted or planned to submit a false or fraudulent claim to
the government for payment.” App. 107. Because Lisenby did
not connect his internal warnings about Olympus’s alleged
FDA regulatory violations to a specific FCA violation, the
District Court held that Lisenby had not sufficiently alleged
protected conduct. The District Court therefore dismissed
Lisenby’s retaliation claim with prejudice.5 Lisenby timely
4
Lisenby does not challenge on appeal the District Court’s
dismissal of the state law claims.
5
The District Court did not explain why dismissal with
prejudice was warranted. But on appeal, Lisenby does not
challenge the District Court’s analysis — or lack thereof — as
to why the FCA retaliation claim was dismissed with prejudice.
7
appealed.
II.6
On appeal, Lisenby challenges the District Court’s
dismissal of his retaliation claim under the False Claims Act.
We first describe the relevant parts of that statute. Next, we
consider two questions of first impression for this Court:
whether a retaliation claim under the False Claims Act, 31
Nor does he contend, in the alternative, that he should be given
leave to further amend the Amended Complaint. Even if
Lisenby had raised such an argument before us, that argument
would fail because he did not move for leave to file a Second
Amended Complaint before the District Court. See Fletcher-
Harlee Corp. v. Pote Concrete Contractors, Inc., 482 F.3d 247,
253 (3d Cir. 2007) (“[I]n ordinary civil litigation it is hardly
error for a district court to enter final judgment after granting a
Rule 12(b)(6) motion to dismiss when the plaintiff has not
properly requested leave to amend its complaint.”).
6
The District Court had jurisdiction over Lisenby’s FCA claim
pursuant to 28 U.S.C. § 1331, and we have jurisdiction under
28 U.S.C. § 1291. We exercise plenary review of a district
court’s grant of a motion to dismiss under Rule 12(b)(6). Bah
v. United States, 91 F.4th 116, 119 (3d Cir. 2024). To survive
a motion to dismiss under Rule 12(b)(6), a plaintiff must allege
“enough facts to state a claim to relief that is plausible on its
face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007).
A claim is facially plausible “when the plaintiff pleads factual
content that allows the court to draw the reasonable inference
that the defendant is liable for the misconduct alleged.”
Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009).
8
U.S.C. § 3730(h), is subject to the particularity requirement of
Federal Rule of Civil Procedure 9(b); and what constitutes
protected conduct under the “other efforts” prong of a False
Claims Act retaliation claim. We hold that a False Claims Act
retaliation claim is not subject to the Rule 9(b) particularity
requirement. We also hold that to engage in protected “other
efforts” conduct under § 3730(h)(1), the plaintiff must have
held an objectively reasonable belief that his or her employer
was violating or was about to violate the FCA. Applying the
proper standard here, the Amended Complaint fails to allege
that Lisenby engaged in conduct protected by the “other
efforts” prong of § 3730(h)(1). We will therefore affirm the
District Court’s order dismissing Lisenby’s FCA retaliation
claim.
A.
The False Claims Act imposes liability on any person
who “knowingly presents, or causes to be presented, [to the
federal government] a false or fraudulent claim for payment or
approval.” 31 U.S.C. § 3729(a)(1)(A). The FCA provides two
ways of initiating an action. Hutchins v. Wilentz, Goldman &
Spitzer, 253 F.3d 176, 181–82 (3d Cir. 2001). The government
may file suit to recover damages stemming from fraudulent
claims. 31 U.S.C. § 3730(a); Hutchins, 253 F.3d at 181. A
private plaintiff may also file a qui tam suit on the
government’s behalf and, if successful, retain up to thirty
percent of the funds recovered. 31 U.S.C. §§ 3730(b)(1),
(d)(2); Hutchins, 253 F.3d at 181–82.
The FCA contains an anti-retaliation provision that
shields employee whistleblowers from retaliation “because of”
conduct protected by the Act. 31 U.S.C. § 3730(h)(1). To state
9
a retaliation claim under the FCA, a plaintiff must allege that
he (1) engaged in protected conduct, and (2) was discriminated
against because of his protected conduct. DiFiore v. CSL
Behring, LLC, 879 F.3d 71, 76 (3d Cir. 2018) (citing Hutchins,
253 F.3d at 186). A plaintiff must also show that his employer
was on notice that he was engaged in protected conduct, United
States ex rel. Ascolese v. Shoemaker Constr. Co., 55 F.4th 188,
194–95 (3d Cir. 2022), and that the protected conduct was the
“but-for” cause of the employer’s retaliation, DiFiore, 879 F.3d
at 78. The FCA’s anti-retaliation provision identifies two
categories of protected conduct. See 31 U.S.C. § 3730(h)(1).
Section 3730(h)(1) protects employees from retaliation for
“lawful acts done . . . in furtherance of” either “an action [under
the FCA]” or “other efforts to stop 1 or more violations of” the
FCA. Id. This appeal involves only the “other efforts” prong.
Before considering the merits, we must first determine
what pleading standard governs an FCA retaliation claim.
Federal Rule of Civil Procedure 8(a) requires only “a short and
plain statement of the claim showing that the pleader is entitled
to relief.” Fed. R. Civ. P. 8(a)(2). Federal Rule of Civil
Procedure 9(b), by contrast, requires claims involving
allegations of fraud to be pled with particularity. Fed. R. Civ.
P. 9(b).
A person is liable under the FCA for, among other
things, “knowingly present[ing], or caus[ing] to be presented,
a false or fraudulent claim for payment or approval” to the
federal government. 31 U.S.C. § 3729(a)(1)(A). FCA claims
are thus subject to Rule 9(b)’s heightened pleading standard.
See Foglia v. Renal Ventures Mgmt., LLC, 754 F.3d 153, 155,
157–58 (3d Cir. 2014) (determining whether the plaintiff’s
allegations with respect to his FCA claim satisfy the Rule 9(b)
10
standard). Retaliation claims under the FCA do not, however,
involve allegations of fraud. See 31 U.S.C. § 3730(h)(1)
(imposing liability on employers that “discriminate[] against”
an employee “because of lawful acts done . . . in furtherance of
an action under [the FCA] or other efforts to stop 1 or more
violations” of the FCA). Accordingly, we hold that allegations
with respect to an FCA retaliation claim need only satisfy Rule
8(a)’s notice pleading standard.7
We turn now to the question of what constitutes
protected conduct under the “other efforts” prong of
§ 3730(h)(1). This Court’s decision in Ascolese recognized
that Congress’s 2009–2010 amendments to the FCA expanded
the anti-retaliation provision to include “other efforts to stop 1
or more violations of” the Act. 55 F.4th at 195 (quoting 31
U.S.C. § 3730(h)(1)). But this Court has not yet had an
opportunity to determine the legal standard for protected
conduct under the “other efforts” prong of the FCA’s anti-
retaliation provision. We will do so here.
7
This conclusion is consistent with the decision of every other
Court of Appeals to have addressed this issue. See United
States ex rel. Sibley v. Univ. of Chi. Med. Ctr., 44 F.4th 646,
661–62 (7th Cir. 2022); United States ex rel. Chorches v. Am.
Med. Response, Inc., 865 F.3d 71, 95 (2d Cir. 2017); Smith v.
Clark/Smoot/Russell, 796 F.3d 424, 433 (4th Cir. 2015);
Mendiondo v. Centinela Hosp. Med. Ctr., 521 F.3d 1097, 1103
(9th Cir. 2008); United States ex rel. Williams v. Martin-Baker
Aircraft Co., 389 F.3d 1251, 1259 (D.C. Cir. 2004); United
States ex rel. Karvelas v. Melrose-Wakefield Hosp., 360 F.3d
220, 238 n.23 (1st Cir. 2004), abrogated on other grounds by
Allison Engine Co. v. United States ex rel. Sanders, 553 U.S.
662 (2008).
11
We first conclude that to state a retaliation claim under
the “other efforts” prong of § 3730(h)(1), a plaintiff’s actions
must be connected to a violation of the FCA. That is, a
plaintiff’s conduct must be related to the submission of a false
or fraudulent claim to the federal government for payment or
approval. The text of the FCA plainly requires this nexus.
Section 3730(h)(1) protects employees from retaliation for
“lawful acts done . . . in furtherance of . . . other efforts to stop
1 or more violations of this subchapter.” 31 U.S.C.
§ 3730(h)(1) (emphasis added). Because the text of the statute
is clear, we need not look any further. See Hartford
Underwriters Ins. Co. v. Union Planters Bank, N.A., 530 U.S.
1, 6 (2000).
This conclusion is in accord with the decisions of
several of our sister Courts of Appeals. See, e.g., Hickman v.
Spirit of Athens, Ala., Inc., 985 F.3d 1284, 1289 (11th Cir.
2021) (noting that plaintiffs “are, at a minimum, required to
show that the activity they were fired over had something to do
with the False Claims Act—or at least that a reasonable person
might have thought so”); Singletary v. Howard Univ., 939 F.3d
287, 296 (D.C. Cir. 2019) (“[T]he [“other efforts”] prong . . .
requires that the employee’s efforts pertain to fraud in
connection with the submission of a claim for federal
government funds.”); United States ex rel. Reed v. KeyPoint
Gov’t Sols., 923 F.3d 729, 767 (10th Cir. 2019) (explaining
that a plaintiff’s actions must be connected to the FCA); United
States ex rel. Grant v. United Airlines, Inc., 912 F.3d 190, 202
(4th Cir. 2018) (“[W]hile the plaintiff’s actions need not lead
to a viable FCA action[,] . . . they must still have a nexus to an
FCA violation.” (citation and quotation marks omitted)).
Accordingly, a plaintiff has not engaged in protected conduct
under the “other efforts” prong if his actions pertain only to
12
reporting statutory or regulatory noncompliance without some
additional connection to an FCA violation.
We also hold that to engage in conduct protected by the
“other efforts” prong of § 3730(h)(1), a plaintiff must, in good
faith, have held an objectively reasonable belief that his
employer was violating, or would violate, the FCA.8 This
standard sets a relatively low bar that coheres with Congress’s
intent to expand the scope of the FCA’s anti-retaliation
provision to protect employees’ “‘efforts to stop’ violations of
the statute before they happen or recur.” Ascolese, 55 F.4th at
194 (quoting Singletary, 939 F.3d at 296); see also Singletary,
939 F.3d at 296 (noting that the “other efforts” prong is
“preventative”).9 This holding is consistent with the decisions
8
The parties agree that this Court should adopt an objectively
reasonable belief standard for retaliation claims under the
FCA.
9
The objective reasonableness standard also comports with
how this Court has interpreted anti-retaliation provisions in
other statutes. The FCA is one of several federal statutes that
protect whistleblowers from retaliation. See, e.g., Title VII of
the Civil Rights Act of 1964, 42 U.S.C. § 2000e-3(a);
Americans with Disabilities Act (“ADA”), 42 U.S.C.
§ 12203(a); Age Discrimination in Employment Act
(“ADEA”), 29 U.S.C. § 623(d); Emergency Medical
Treatment and Labor Act (“EMTALA”), 42 U.S.C.
§ 1395dd(i). This Court has applied an objectively reasonable
belief standard to retaliation claims under each of those
statutes. See Moore v. City of Philadelphia, 461 F.3d 331, 341
(3d Cir. 2006) (holding that to state a Title VII retaliation
claim, an “employee must hold an objectively reasonable
13
of several other Courts of Appeals, each of which have adopted
an objective reasonableness standard for retaliation claims
under the “other efforts” prong of the FCA’s anti-retaliation
provision. See, e.g., Mooney v. Fife, 118 F.4th 1081, 1092 (9th
Cir. 2024); Singletary, 939 F.3d at 296; United States ex rel.
Strubbe v. Crawford Cnty. Mem’l Hosp., 915 F.3d 1158, 1167
(8th Cir. 2019); Grant, 912 F.3d at 201–02; United States ex
rel. Uhlig v. Fluor Corp., 839 F.3d 628, 635 (7th Cir. 2016).
This standard consists of both a subjective component and an
objective component. The subjective component requires the
employee to believe, in good faith, that his employer is
violating, or will soon violate, the FCA. The objective
component asks whether a reasonable employee in the same or
similar circumstances would believe that the employer is
submitting, or will submit, false claims for payment to the
belief, in good faith, that the activity they oppose is unlawful
under Title VII”); Williams v. Phila. Hous. Auth. Police Dep’t,
380 F.3d 751, 759 n.2 (3d Cir. 2004) (noting that an ADA
retaliation claim requires the plaintiff to have a “reasonable,
good faith belief that she was entitled to request the reasonable
accommodation she requested”), superseded by statute on
other grounds, ADA Amendments Act of 2008, Pub. L. No.
110-325, 122 Stat. 3553, as recognized in Robinson v. First
State Cmty. Action Agency, 920 F.3d 182, 188 n.30 (3d Cir.
2019); Daniels v. Sch. Dist. of Phila., 776 F.3d 181, 192–94
(3d Cir. 2015) (applying the “objectively reasonable belief”
standard to retaliation claims under the ADEA); Gillispie v.
RegionalCare Hosp. Partners, Inc., 892 F.3d 585, 593 (3d Cir.
2018) (holding that to engage in protected conduct under the
EMTALA, a plaintiff “need only establish that [s]he was acting
under a good faith, reasonable belief that a[n] [EMTALA]
violation existed” (citation and quotation marks omitted)).
14
government. By ensuring that the employee not only believes,
but reasonably believes, that his employer is violating the FCA,
the objectively reasonable belief standard balances the two
aims of the FCA: “preventing opportunistic suits” and
“encouraging citizens to act as whistleblowers.” See United
States ex rel. LaCorte v. SmithKline Beecham Clinical Lab’ys,
Inc., 149 F.3d 227, 233 (3d Cir. 1998) (explaining how § 3730
“attempts to reconcile two conflicting goals”). We therefore
conclude that protected conduct under the “other efforts” prong
requires a plaintiff to hold, in good faith, an objectively
reasonable belief that his or her employer is violating, or will
violate, the FCA.
B.
We turn now to the allegations in the Amended
Complaint. At the motion to dismiss stage, Lisenby must
allege facts that, when viewed in his favor, support an inference
that he believed, and it was objectively reasonable for him to
believe, that Olympus was violating the FCA. The Amended
Complaint fails to allege that Lisenby believed that Olympus
had submitted, or was submitting, false claims for payment to
the federal government. Accordingly, we will affirm the
District Court’s order.
The Amended Complaint does not contain any
allegations from which we may infer that Lisenby believed that
Olympus was violating, or would soon violate, the FCA.
Instead, the Amended Complaint alleges that Lisenby was
concerned about Olympus violating FDA regulations. Lisenby
points to several facts alleged in the Amended Complaint that
he contends demonstrate his belief that Olympus had
committed, or would commit, fraud on the government. These
15
facts include that Olympus is a federal contractor; Olympus
sells its medical devices to hospitals for use in medical
procedures covered by Medicare and Medicaid; Lisenby
discovered systemic deficiencies in Olympus’s design
approach and quality management system that resulted in
violations of FDA regulations; Olympus had already sold
noncompliant products; and Lisenby reported his concerns to
others, providing examples of already-sold products that did
not conform to FDA regulations.
Yet these allegations suggest only that Lisenby was
concerned about Olympus’s alleged FDA regulatory violations
and the attendant risks to patient safety, not fraud committed
against the government. For example, the Amended
Complaint alleges that Lisenby “raised concerns regarding
design quality and non-compliant product testing issues
required by FDA regulations” during the CTO meetings. App.
6. His concerns focused on “a lack of product safety,” “FDA
compliance issues,” and “patient safety risks.” App. 7–8. At
no point does the Amended Complaint connect Lisenby’s
concerns about FDA regulatory violations and safety risks to a
belief that Olympus was submitting false claims for payment
to the federal government.
Lisenby’s other arguments are unavailing. He first
contends that “it was objectively reasonable for Lisenby to
believe that Olympus violated the FCA” because the implied
false certification theory provides a basis for FCA liability.
Lisenby Br. 22. The Supreme Court has held that, in some
circumstances, the implied false certification theory can
provide a basis for liability under the False Claims Act.
Universal Health Servs., Inc. v. United States ex rel. Escobar,
579 U.S. 176, 181 (2016). Liability can arise under this theory
16
when a defendant submits a claim for payment and “knowingly
fails to disclose [its] noncompliance with a statutory,
regulatory, or contractual requirement,” rendering its specific
representations about the goods or services misleading. Id. A
claim premised on this theory is actionable under the FCA only
if “[a] misrepresentation about compliance with a statutory,
regulatory, or contractual requirement [is] material to the
Government’s payment decision.” Id. The Supreme Court’s
decision in Universal Health was limited to the FCA’s qui tam
provision and did not address its anti-retaliation provision. See
id. at 184–87 (concluding that the implied false certification
theory can provide a basis for a qui tam suit). See also
Guilfoile v. Shields, 913 F.3d 178, 188 (1st Cir. 2019)
(distinguishing between the standards for a qui tam claim under
31 U.S.C. § 3730(b) and a retaliation claim under 31 U.S.C.
§ 3730(h)); Graham Cnty. Soil & Water Conservation Dist. v.
United States ex rel. Wilson, 545 U.S. 409, 416 n.1 (2005)
(noting that “proving a violation of § 3729 is not an element of
a § 3730(h) [retaliation] cause of action”).
Here, Lisenby contends that Olympus defrauded the
government by falsely certifying that it had satisfied FDA
regulations, compliance with which is allegedly a material
condition of payment by the federal government. According
to Lisenby, “misrepresenting data to the FDA can lead to a
violation of the FCA’s qui tam provision, [so] an employee’s
observation that this type of misconduct was occurring easily
satisfies the lower standard of a reasonable belief.” Lisenby
Br. 25. Yet Lisenby appears to misapprehend the relevant legal
standard. As explained above, a retaliation claim under the
“other efforts” prong requires a plaintiff to reasonably believe
that his employer was committing fraud against the federal
government. That inquiry is distinct from the test for
17
substantive liability under the FCA. See Guilfoile, 913 F.3d at
188 (noting how the standards for a qui tam claim and
retaliation claim under the FCA differ). At issue on appeal is
an FCA retaliation claim, not a qui tam claim. Even if we
assume that Olympus would be liable under the implied false
certification theory, Lisenby has not alleged that he believed
that Olympus was committing fraud against the federal
government — a necessary element of an FCA retaliation
claim. Lisenby’s reliance on the implied false certification
theory thus cannot fill the gaps in the Amended Complaint.
Lisenby also relies on the Court of Appeals for the
District of Columbia Circuit’s opinion in Singletary for the
proposition that “a regulatory violation can give rise to a
reasonable belief of an FCA violation.” Lisenby Br. 25–26.
Yet the facts of the Singletary decision are distinguishable.
The plaintiff in Singletary worked as a veterinarian in a
university’s research laboratory that received federal funding.
939 F.3d at 291, 293. According to the complaint, the
university made annual certifications to the National Institutes
of Health (“NIH”) and other federal agencies that the
laboratory animals were cared for in accordance with federal
regulations. Id. at 298. The plaintiff alleged that those
certifications “were necessary for [the University] to receive
and retain the grant monies that [it] in fact received from the
United States.” Id. The plaintiff repeatedly informed her
supervisor that the laboratory was not complying with NIH
standards and that its noncompliance “constituted violations of
the terms and conditions under which [the University] received
grant money from NIH and the federal government.” Id. at
297. The court concluded that these allegations were sufficient
to allege protected activity under the “other efforts” prong of
§ 3730(h)(1). Id. at 297–99. The court noted that the
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plaintiff’s concerns, as alleged in the complaint, “did not
accuse the University of fraud in terms.” Id. at 298. The court
nevertheless concluded that the plaintiff “had an objectively
reasonable belief that the University was or would soon be
submitting false certifications of its compliance with animal
welfare requirements in connection with funding claims.” Id.
Lisenby correctly notes that “magic words” are not
required to state an FCA retaliation claim. Lisenby Br. 36. Yet
he acknowledges that “[t]he facts alleged in the Amended
Complaint demonstrate that Lisenby reported his concerns
about Olympus’[s] systemic failures to comply with FDA
standards.” Lisenby Br. 38. And here, unlike the plaintiff in
Singletary, the Amended Complaint lacks any allegations
connecting Lisenby’s concerns about FDA regulatory
violations to a belief that Olympus was committing fraud
against the government. Absent allegations supporting such a
nexus, Lisenby has failed to state a retaliation claim under the
“other efforts” prong.
Lisenby further contends that the District Court
“improper[ly] narrow[ed]” his allegations of protected activity
in the Amended Complaint. Lisenby Br. 27. He asserts that
the District Court failed to acknowledge his allegations that
“Olympus was already selling products to the government that
failed to comply with FDA regulations.” Lisenby Br. 28. But
even if we assume that those allegations are true, nothing in the
Amended Complaint suggests that Lisenby believed that
Olympus had made, or would make, false claims for payment
with respect to those products. The Amended Complaint
focuses on concerns about regulatory violations and patient
safety, not false claims for payment. Lisenby has thus failed
to state a retaliation claim under the “other efforts” prong of
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§ 3730(h)(1).10 We will therefore affirm the District Court’s
order.
III.
For the foregoing reasons, we will affirm the District
Court’s order dismissing the FCA retaliation claim.
10
As explained above, Lisenby has not sufficiently alleged
that he believed that Olympus was submitting false or
fraudulent claims to the government for payment.
Accordingly, we need not consider whether any such belief
was objectively reasonable or whether his actions put Olympus
on notice of conduct protected under the FCA.
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