On July 26, 2024, U.S. District Judge Wendy Beetlestone in Philadelphia let most of a False Claims Act suit go forward against North American Rescue (NAR) and C-A-T Resources over tourniquets and medical kits sold to the Department of Defense as USA-made.
The claims
- Two former Army combat medics brought the qui tam suit. The government did not intervene.
- They allege the companies sold hundreds of millions of dollars’ worth of Chinese-made medical supplies to the DoD, including the Combat Application Tourniquet, while certifying compliance with the Berry Amendment and the Trade Agreements Act.
- They say boxes found at Fort Bragg and Joint Base Lewis-McChord bore “MADE IN U.S.A.” labels, and that NAR’s South Carolina site only repackaged imports.
- The suit claims about $400 million in harm to taxpayers.
The ruling
The court denied motions to dismiss by NAR and C-A-T Resources, and also kept sterilization claims against NAR. It granted dismissal for Henry Schein, alleged to be NAR’s parent. The ruling does not decide whether the claims are true.
Why it matters
The Berry Amendment bars the DoD from spending on textiles and other covered items not produced in the USA. Cases like this test how domestic sourcing rules are enforced on battlefield gear.
FAQ
Who is being sued?
North American Rescue and C-A-T Resources. Claims against Henry Schein were dismissed.
What is alleged?
That Chinese-made tourniquets and medical kits were sold to the DoD as compliant with the Berry Amendment.
Has the court found fraud?
No. The judge only ruled the claims were pleaded well enough to proceed.
Source & credit
Source: U.S. District Court for the Eastern District of Pennsylvania, opinion filed July 26, 2024, Russ v. North American Rescue, No. 2:21-cv-04238: opinion (PDF, govinfo.gov). Alert item: Law360.