Court reaffirms what a complaint must allege under the New Jersey Insurance Fraud Prevention Act to survive a motion to dismiss.

The plaintiff brought a complaint against a mail order pharmacy alleging violations under the New Jersey Insurance Fraud Prevention Act (NJIFPA), alleging that it paid in excess of $10 million to the defendant, an unlicensed mail order pharmacy in New Jersey. The court reaffirmed that to allege a claim under the NJIFPA, the plaintiff must allege: (1) knowledge, (2) falsity, and (3) materiality. Unlike common law fraud, proof of fraud under the IFPA does not require proof of reliance on a false statement, resultant damages or proof of intent to deceive. Given the heightened pleading standards under the IFPA, insurance carrier’s complaints must make sure that a complaint states a plausible claim under all three prongs to survive a motion to dismiss.

_{Case Law Alerts, 2^nd Quarter, April 2018}

_{Case Law Alerts is prepared by Marshall Dennehey Warner Coleman & Goggin to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2018 Marshall Dennehey Warner Coleman & Goggin, all rights reserved. This article may not be reprinted without the express written permission of our firm.}