The authors of this article discuss new proposed legislation to amend key provisions of the False Claims Act related to materiality, discovery, and the government's (c)(2)(A) dismissal authority.
Recently, a bipartisan group of senators, led by long-time False Claims Act ("FCA") champion Senator Chuck Grassley (R-Iowa), introduced new legislation to amend key provisions of the FCA related to materiality, discovery, and the government's (c)(2)(A) dismissal authority. According to the press release from Senator Grassley's office,1 this legislation, dubbed the False Claims Amendments Act of 2021,2 is a direct response to two recent developments- the U.S. Supreme Court's Escobar decision and the Granston Memo-that the senators view as "making it more difficult for plaintiffs and whistleblowers to succeed in lawsuits against the government." These amendments, which would apply to all pending and future FCA cases, have the potential to significantly increase the burden for those caught in the FCA's crosshairs, whether that be in intervened or privately litigated (i.e., non-intervened) qui tams. This article breaks down the key proposed changes.
Following the Supreme Court's Escobar decision, courts have grappled with when and how to consider government knowledge of alleged fraud in determining whether the defendant's misconduct was "material" to the government's payment decision. In introducing the new FCA amendments, Senator Grassley remarked that...
The Management of Dangote Petroleum Refinery and Petrochemicals has noted with concern the circulation of unfounded and misleading claims suggesting that its petroleum products are exported to Lom...