In United States ex rel. Schutte v. SuperValu and United States ex rel. Proctor v. Safeway, Justice Thomas, writing for a unanimous Supreme Court, held that a defendant's subjective belief about a claim being submitted to the government is what determines scienter under the False Claims Act (FCA). "What matters for an FCA case is whether the defendant knew the claim was false. Thus, if [the defendants] correctly interpreted the relevant phrase and believed their claims were false, then they could have known their claims were false." The decision, published on June 1,2023 has important implications for determining the scope of future FCA liability.
The FCA was passed on March 2, 1863, in response to widespread fraud during the Civil War. It imposes liability on anyone who "knowingly" submits a "false" claim to the government.1 Private citizens, known as whistleblowers or relators, are permitted to bring qui tam lawsuits on behalf of the government when false or fraudulent claims are made for payment, and then share a percentage of the monies that are recovered.
Since 2011, more than 600 qui tam cases have been filed annually.2 In the fiscal year ending September 30, 2022, the Department of Justice (DOJ) reported that settlements and judgments under the FCA exceeded $2.2 billion. The vast majority of monies recovered are tied to the health care industry, including drug and medical device manufacturers, durable...
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 ...