On June 1, 2023, the Supreme Court issued a unanimous opinion in two consolidated False Claims Act ("FCA") cases, U.S. ex rel. Schutte v. SuperValu Inc., et al., No. 21-1326, and U.S. ex rel. Proctor v. Safeway, Inc., No. 22-111. In each case, the qui tam whistleblower plaintiffs ("Petitioners") alleged that retail pharmacy defendants, SuperValu Inc. and Safeway, Inc. ("Respondents"), knowingly overbilled Medicaid and Medicare programs in violation of the FCA. The Court ruled for Petitioners and held that an assessment of a defendant's subjective understanding of the lawfulness of its conduct is the relevant inquiry for evaluating the defendant's knowledge of falsity under the FCA.
Background
To prove an FCA violation, a party must show, among other things, that the defendant submitted a false claim to the Government and--at issue here--the defendant's knowledge of such falsity. 31 U.S.C. 3729(a). In January, the Supreme Court agreed to consider whether and when a defendant's contemporaneous, subjective understanding or beliefs about the lawfulness of its conduct are relevant to whether it "knowingly" violated the FCA, granting certiorari to two cases arising from the Seventh Circuit. See U.S. ex rel. Schutte v. SuperValu Inc., et al., No. 21-1326, and U.S. ex rel. Proctor v. Safeway, Inc., No. 22-111. In these cases, Petitioners alleged that Respondents submitted higher prescription prices to Medicaid and Medicare for reimbursement than the "usual and customary" prices...
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...