On June 1, 2023, in United States ex rel. Schutte, the United States Supreme Court held that, to impose liability on an employer for "knowingly" submitting a false claim to the government for payment, it is sufficient for the plaintiff to prove that the employer knew or suspected that the submission was false, even if an objectively reasonable person may have known or believed otherwise. Reviewing two FCA decisions of the Seventh Circuit, the Court held that an FCA violation can occur because of a defendant's actual "knowledge and subjective beliefs" —not what an objectively reasonable person may have known or believed. Parties litigating FCA claims should promptly and thoroughly re-assess their factual and legal positions in light of the Court's decision. Employers that regularly submit claims to the government for payment should ensure that they are not violating the statute by failing to fully understand the factual and legal basis for the claims submitted.
The FCA imposes liability on anyone who "knowingly" submits a "false" claim to the government. The statute permits private parties to bring lawsuits in the name of the United States against those who have allegedly defrauded the federal government. The Supreme Court's holding arose from two FCA decisions by the Seventh Circuit that affirmed summary judgment in favor of companies facing FCA claims. Based upon its analysis of what "knowingly" means in the context of the FCA, the Supreme Court vacated those...
The Nigerian National Petroleum Company Limited has denied claims that it is selling scrap materials from its refineries, warning the public to disregard such information and remain alert to fraud...