The First Circuit has upheld a district court decision which allowed Fresenius Medical Care Holdings, Inc. to deduct $50 million in taxes related to a $385 million civil settlement regarding False Claims Act (“FCA”) allegations.  In its August 13, 2014 ruling, the court parted ways with the Ninth Circuit, and held as a matter of first impression that, in determining the  tax treatment of an FCA civil settlement, a court may consider factors beyond the mere presence or absence of a tax characterization agreement between the government and the settling party.  The case is Fresenius Medical Care Holdings, Inc. v. United States, Case No. 13-2144 (August 13, 2014), and the opinion can be found at