False Claims Act-Anti-retaliation

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7^th Circuit Court of Appeals

Case Name: Teressa Mestek v. Lac Courte Oreilles Community Health Center

Case No.: 22-2077

Officials: Hamilton, Scudder, and Pryor, Circuit Judges.

Focus: False Claims Act-Anti-retaliation

The Lac Courte Oreilles Band of Lake Superior Chippewa Indians, a federally recognized tribe in northwestern Wisconsin, employed Mestek as the Director of Health Information at their Community Health Center in 2013. When the Health Center implemented a new electronic health records system in 2017, Mestek raised concerns about improper billing practices to management. An external audit confirmed these issues in 2018. Despite initially expressing loyalty, Mestek continued her efforts to uncover billing irregularities. A month later, she was terminated in a meeting with the Medical Director and HR Director. Mestek sued the Health Center and six individuals under the False Claims Act’s anti-retaliation provision. However, the district court dismissed the case, and the Seventh Circuit affirmed the decision, stating that tribal sovereign immunity applied, as the Health Center is an arm of the Tribe, and the individual defendants were protected by the Tribe’s immunity when sued in their official capacities. Affirmed.

Decided 06/29/23

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