The False Claims Act is a centerpiece of the Federal Government’s anti-fraud efforts, accounting for nearly $3 billion in judgments and settlements in fiscal year 2024 alone. Now, two developments could reshape enforcement. First, the Department of Justice and Department of Health & Human Services recently formed an FCA working group to coordinate government enforcement actions, particularly in top priority areas. Second, several judges have questioned the constitutionality of the FCA’s qui tam mechanism, which last year generated nearly 70% of new FCA claims. These developments are worth monitoring for their potentially significant impact on companies in the pharmaceutical and healthcare sectors and on other companies doing business with the government.
The FCA is used to fight fraud and abuse in federal programs and to restore funds to healthcare programs such as Medicare, Medicaid, and TRICARE. It provides that a person who knowingly submits, or causes another person to submit, false claims to the government is liable for treble damages plus a penalty linked to inflation. The FCA also includes a provision allowing private persons to initiate civil actions on the government’s behalf. 31 U.S.C. § 3730(b). These private persons are called qui tam relators, and they are often insiders with personal knowledge of the alleged fraud perpetrated by the defendant. If the government does not intervene in an FCA proceeding brought by a qui tam relator, the relator...
Shoppers will now have a year to submit those rebate forms. Menards will pay Minnesota and nine other states millions to settle claims the company used deceptive advertising to promote its longstan...