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Friday, April 24, 2026

Supreme Court Reinforces FCA and Whistleblower Incentives - The National Law Review

The False Claims Act (“FCA”) seeks to protect government funds supporting public services by imposing treble damages and penalties on entities that falsely claim money from the United States or fail to pay money owed to the federal government. To be liable under the Act, the defendant must have acted “knowingly.” FCA claims can arise across industries, including healthcare, infrastructure, veteran support, job programs, disaster relief, and other essential social services. Oftentimes, these claims involve government contractors who knowingly fail to provide the services for which they have received government funding. For example, in June 2022, the government filed claims against American Health Foundation and three affiliated nursing homes for extreme failures to meet required standards of care. The Department of Justice alleges abuse and neglect at the nursing homes, specifically that the defendants failed to maintain adequate staffing and failed to implement appropriate infection control protocols. Earlier this year, the district court denied the defendants’ motion to dismiss, holding that they had falsely claimed to have met a prerequisite standard of care for reimbursement under Medicare and Medicaid, and that their misrepresentations were material to the government’s making the reimbursements. United States v. American Health Foundation Inc., No. 22-02344, 2023 WL 2743563 (E.D. Pa. Mar. 31, 2023)

Whistleblowers are Central to Enforcement of the False Claims Act

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