Before filing a criminal or civil action under the False Claims Act, or FCA (31 U.S.C. § 3729), the United States Department of Justice (DOJ) can start with a civil investigative demand or CID. Similar to subpoenas, Civil Investigative Demands (CIDs) request information from the recipient, with the threat of legal action for noncompliance.
Even if you are not the target of the False Claims Act investigations, how you respond to a CID can either protect your company or expose it to some significant legal liability. Dr. Nick Oberheiden is a CID defense lawyer at the national law firm Oberheiden P.C. and has helped numerous clients navigate this tricky step during False Claims Act investigations. Here is what you need to know about CIDs, as well as a few general tips for how to respond to them.
How Do CIDs Work?
A CID is a formal request for information that is backed up by criminal contempt charges, much like a subpoena. Unlike a subpoena, though, Civil Investigative Demands (CIDs) are administrative subpoenas issued by a law enforcement agency, rather than by a court. This means that there does not need to be a probable cause showing before it is issued.
Not all federal law enforcement agencies have the authority to issue a CID, though, and the DOJ can only issue one for antitrust violations or alleged False Claims Act violations. When it comes to the FCA, federal law (31 U.S.C. § 3733) gives the DOJ the authority to issue a CID to anyone believed to have information...
Although on appeal the court distinguished that there was new information in the claim, the court ultimately found the new information was not material, nor was it plead with particularity. The U....