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In February, the Sixth Circuit in U.S. ex rel. Wall v. Circle C Construction rejected the government’s FCA damages theory that it is entitled to three times the amount of the total contract value, regardless of any value received, because the claim for payment was “tainted” by the underlying legal violation.  In a “Feature Comment” published in The Government Contractor, C&M attorneys explore the origins of the tainted claim damages and plaintiffs’ increasing reliance on the theory in cases where the market value of the harm is not readily calculable such as in cases of fraudulent inducement and small business fraud.

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Last week, in a case that will have a significant impact on the government contracting industry, the Supreme Court granted certiorari in Universal Health Services, Inc. v. United States ex rel. Escobar, a False Claims Act (FCA) case from the First Circuit. By agreeing to hear the case, the Court appears set to resolve a