Attorneys with law firm Gibson Dunn believe that fewer investors will be investigated for False Claims Act violations under the incoming Trump administration but expect other policy to go full steam ahead.
Expect health care enforcement actions from the US Department of Justice to cool down a notch under the incoming administration of President Donald Trump, Gibson Dunn attorneys said during a 7 November webinar.
Gibson Dunn partner John Partridge said that may be especially true for enforcement of cybersecurity-related claims. In 2021, the Biden administration launched an initiative that used the False Claims Act against firms that violated federal cybersecurity initiatives, but Partridge believes that policy is likely to be dropped.
“We’ve seen Civil Frauds and US Attorneys’ Offices pursue novel, aggressive theories in these types of cases, likely operating under the marching orders of the front office,” Partridge said. “We expect this to moderate somewhat. The old cases will continue on, no doubt, but there may be more opportunities for defendants to persuade DOJ on the margins not to pursue these types of cases, not to intervene in them.”
However, he predicts another key area of enforcement – fraud related to COVID-19 policy, such as the Paycheck Protection Program – will continue almost unchanged. The DOJ has taken enforcement action against small businesses, loan processors, and companies that started during the pandemic to provide diagnostic services.
“We doubt the...
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