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Category Archives: False Claims

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Join Us for a False Claims Act Webinar

Posted in False Claims
On Tuesday, July 1st from 1-2 pm, Bob Rhoad will join Bates White as moderator on a panel entitled “False Claims Act: Seeking Clarity on Damages and Penalties.” The discussion will center around the more prominent issues where the measurement of FCA damages and penalties remains a matter of close scrutiny, including: The landscape of … Continue Reading

Negotiating False Claims Act Settlements

Posted in False Claims
A prominent FCA practitioner observed twenty years ago that while FCA settlements were common, it was impossible to find a standard settlement agreement, if there was such a thing, or a DOJ policy on point.¹ His words ring true today. While the FCA has become the Government’s principal anti-fraud weapon, little has been written about the … Continue Reading

Ten FCA Decisions from 2013 That Contractors Need to Know

Posted in False Claims
In “Ten FCA Decisions From 2013 That Government Contractors Need To Know,” a feature comment published in The Government Contractor, C&M attorneys Andy Liu, Jonathan Cone, and Olivia Lynch count down 10 FCA decisions from last year that they predict will have the most significant legal and practical impact on government contractors. Read how the … Continue Reading

Solicitor General Addresses Standard for Rule 9(b) in FCA Cases, Asks Supreme Court Not to

Posted in False Claims
The government has reiterated in no uncertain terms its proposed standard for particularity under the FCA: “a qui tam complaint satisfie[s] Rule 9(b) if it contains detailed allegations supporting a plausible inference that false claims were submitted to the government, even if the complaint does not identify specific requests for payment.”  Brief for United States … Continue Reading

The Growing Split Over Whether the FCA’s Public Disclosure Bar is Still a Jurisdictional Limitation

Posted in False Claims
In March, we published an article entitled “New Questions Regarding The Jurisdictionality Of The FCA’s Public Disclosure Bar: Potential Hurdles And Increased Costs In Defending Against Parasitic Qui Tam Actions,” The Government Contractor, Vol. 55, No. 12 (Mar. 27, 2013). We explored whether, given the 2010 amendments to the civil False Claims Act (FCA) under … Continue Reading

False Claims Act Developments at Crowell & Moring’s 29th Annual Ounce of Prevention Seminar

Posted in False Claims
On May 15-16, 2013, Crowell & Moring is hosting its annual Ounce of Prevention Seminar (OOPS). This year’s program, entitled Weathering the Rough Seas of Regulation, will once again provide the government contract community with a comprehensive review of the latest developments in federal contracting. In the morning session on May 16, attorneys Andy Liu, Robert … Continue Reading

Fourth Circuit Finds that Wartime Suspension of Limitations Act Tolls Statute of Limitations for Qui Tam Relators Even When the Government Does Not Intervene

Posted in False Claims
Last week, the Fourth Circuit issued a decision that exposes government contractors to False Claims Act lawsuits based on allegations which were previously considered untimely and which had already been the subject of prior qui tam action.  In U.S. ex rel. Carter v. Halliburton Co. (Mar. 18, 2013), the panel held that the Wartime Suspension … Continue Reading

Ninth Circuit Reinstates FCA Complaint Even Though It Fails To Allege Actual False Claims

Posted in False Claims
Complaints alleging violations of the False Claims Act (“FCA”) must satisfy Federal Rule of Civil Procedure 9(b), which requires the government or qui tam relator to “state with particularity the circumstances constituting fraud.” In order to ferret out fishing expeditions, many courts have held that Rule 9(b) requires plaintiffs to allege the who, what, when, … Continue Reading

What will they think of next? Qui tam relator alleges False Claims Act violation for “fraud-on-the-FDA”

Posted in False Claims
A recent case from the District of Massachusetts illustrates how the False Claims Act may be stretched to cover companies that do not even submit claims to the government. In U.S. ex rel. Ge v. Takeda Pharmaceutical Co., Nos. 10-11043-FDS, 11-10343-FDS (D. Mass. Nov. 1, 2012), the relator alleged that Takeda Pharmaceuticals violated the FCA … Continue Reading

The Little Engine That Could: 6th Circuit Resurrects FCA Case Against Allison Engine Company

Posted in False Claims
FCA Amendments Congress enacted the Fraud Enforcement And Recovery Act (FERA) of 2009 to broaden the language of the False Claims Act to impose liability on anyone who knowingly uses “a false record or statement material to a false or fraudulent claim.” 31 U.S.C. § 3729(a)(2). It made this change to legislatively overrule the Supreme … Continue Reading

In False Claims Act Cases, Government Must Preserve Evidence Before It Intervenes

Posted in False Claims
A relator filing a qui tam complaint under the False Claims Act must file it under seal, see 31 U.S.C. 3739(b)(2), giving the government an opportunity to investigate the allegations.  While the initial sealing period lasts 60 days, the government routinely receives extensions, which means that FCA cases often stay under seal for months, if … Continue Reading

Fifth Circuit: Federal Auditors Can Be Whistleblowers

Posted in False Claims
The Fifth Circuit held that federal government employees can bring whistleblower suits under the False Claims Act (FCA), even when it is their job to investigate fraud. The whistleblowers in the case, Little v. Shell Exploration & Production Co., alleged that Shell defrauded the federal government of millions of dollars in royalties by taking improper … Continue Reading

C&M Lawyers Conduct Live Webinar on False Claims Act on Thursday, June 14

Posted in False Claims
On Thursday, June 14 at 1 p.m. (Eastern time), Crowell & Moring government contracts and false claims act attorneys Bob Rhoad and Dalal Hasan will be conducting a webinar entitled “False Claims Act: Key Provisions and Current Trends in Compliance and Enforcement” on behalf of L2 Federal Resources. During this 90-minute webinar, Bob and Dalal will provide … Continue Reading

DOJ Renews Effort on Parallel Civil, Criminal, Regulatory and Administrative Proceedings

Posted in False Claims
U.S. Attorney General Eric Holder recently issued a DOJ-wide memorandum urging federal government attorneys to coordinate when conducting parallel civil, criminal, regulatory and administrative proceedings. Holder wrote that parallel criminal and civil investigations would deter future offenses and maintain program integrity, while also acting to “secure the full range of the government’s remedies (including incarceration, … Continue Reading

Imposition of Substantial Penalties Under The FCA Where No Damages Are Found Violates Eighth Amendment

Posted in False Claims
Last week, the U.S. District Court for the Eastern District of Virginia in U.S. ex rel. Bunk v. Birkart Globistics GmbH & Co., et al. (a qui tam case in which the government did not intervene) declined to impose statutory penalties on the jury’s finding of 9,136 false claims (invoices submitted by defendants under a … Continue Reading

$199.5 Million Settlement for GSA in FCA Action Against Schedule Holder

Posted in False Claims, GSA Schedule
GSA has now topped the $128 million settlement it reached in 2009 with NetApp – then the largest settlement reached in an FCA action against a GSA Schedule contractor – by settling with Oracle Corporation and Oracle America Inc. this past week in the amount of $199.5 million plus interest. The settlement resolves an FCA action … Continue Reading

C&M Publishes Article in BNA Federal Contracts Report on Recent Supreme Court Holding that FOIA Response Falls Within FCA Public Disclosure Bar

Posted in False Claims
The Freedom of Information Act (“FOIA”), 5 U.S.C. §552, is intended to uphold the principles of transparency and open government, so that citizens can assess government accountability and actions. Since its enactment in 1966, FOIA has also been used by companies to obtain information about their competitors’ prices and contract performance, as well as by … Continue Reading

Collateral Consequences of a False Claims Act Settlement

Posted in False Claims, GSA Schedule
Two years ago, GSA reached a $128 million settlement with Network Appliance, now known as NetApp Inc., based on a whistleblower False Claims Act (“FCA”) suit that alleged the company had failed to comply with the Price Reduction Clause of the contract. The settlement amount was, and continues to be, the largest Schedule contract fraud settlement … Continue Reading