The United States Supreme Court recently held that a defendant's subjective belief is always relevant to the False Claims Act's scienter element, regardless of what an objectively reasonable person may have believed. This means that an objectively reasonable interpretation of a requirement can still result in False Claims Act liability if accompanied by evidence that a defendant thought the claim was inaccurate at the time of submission. In practice, the holding means that it will be increasingly difficult for defendants to prevail in False Claims Act litigation as to scienter at the motion to dismiss stage. Instead, any fight regarding scienter will need to be made with discovery, in motions for summary judgment, and at trial. For health care providers and government contractors, the holding also confirms entities should carefully consider (1) carefully and contemporaneously documenting their interpretations of ambiguous provisions and should consider (2) whether adopting a more conservative interpretation of an ambiguous provision and/or inquiring with the relevant agency as to the "correct" interpretation is the safest course of action given potential reduction in enforcement risk.
On 1 June 2023, the United States Supreme Court in the case of United States ex rel. Schutte v. SuperValu issued one of the most anticipated decisions in federal False Claims Act (FCA) jurisprudence in years. In a unanimous opinion drafted by Justice Clarence Thomas, the Supreme...
Police are investigating Park Chulmin, 36, a former member of the Seongnam International Mafia Group, who raised allegations about President Lee Jae Myung’s alleged ties to organized crime during ...