A successful False Claims Act (“FCA”) claim must show that the defendant submitted a false claim or statement “knowingly.” The “knowing” element—the scienter prong—depends on whether the defendant actually knew that the claim or statement was incorrect, or recklessly disregarded the facts or legal requirements that rendered the claim “false.” But, of course, government regulations, contract terms, and grant requirements can be incredibly complex and difficult to understand. When the ground rules are unclear, how does a company “know” that its claims for payment may be false under the FCA?
The FCA defines “knowing” as (1) having “actual knowledge of the information;” (2) acting “in deliberate ignorance of the truth or falsity of the information;” or (3) acting “in reckless disregard of the truth or falsity of the information.” 31 U.S.C. § 3729(b). A “specific intent to defraud” is not required for liability under the FCA.
Companies doing business with the government have a duty to familiarize themselves with the laws, regulations, and contract terms applicable to that relationship. Where laws or regulations are unclear, an agency often will provide guidance in the form of rulemakings (regulations) or official policy announcements.
Judicial interpretations of ambiguous laws can also provide insight into the proper meaning. A court’s interpretation of a statute or regulation may be sufficient to warn...
Times of Malta's editorial team has demanded that alleged money-launderer Chris Spiteri remove false claims posted on Facebook against journalist Jacob Borg. An alert has also been filed with the ...