Previous False Claims Act (FCA) Fundamentals posts have focused on the primary elements of an FCA claim, including falsity, materiality, scienter, and damages.
But even if a claim meets all of the requisite elements for a valid FCA claim, it may still be barred if the relator or the government fails to file their claim within the specified statute of limitations. While the concept of a statute of limitations is not exclusive to the FCA, the unique dual-framework limitations period adopted by the FCA, which Supreme Court Justice Alito called “terribly drafted,” can easily result in what he called “a statutory interpretation dilemma.” This post will assist the reader in determining which of multiple statutes of limitation may apply to a specific FCA claim.
The Statutory Framework
While the running of any statute of limitations depends on the facts underlying the claim, what is unique about the FCA’s statute of limitations is that even the applicable period can vary significantly based on those facts. The relevant law establishes two separate statutes of limitations for substantive FCA claims that could apply depending on the circumstances. Under 31 U.S.C. § 3731(b), an FCA claim “may not be brought—
(1) more than 6 years after the date on which the violation of section 3729 is committed, or
(2) more than 3 years after the date when facts material to the right of action are known or reasonably should have been known by the official of the United States charged with...
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