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Does Private Enforcement Attract Excessive Litigation? Evidence From The False Claims Act, David Y. Kwok

David Y Kwok

Private litigation can help correct wrongs, but the right to litigate can also be abused. The structure of the U.S. judicial system can make it difficult to determine how frequently private parties misuse litigation. Utilizing a new data set of False Claims Act litigation, I conduct a systematic evaluation of private litigation in the fraud context. I find law firms generally pursue a cooperative strategy with the Department of Justice rather than adopting abusive litigation practices. This suggests that private litigation may effectively complement public enforcement and that such litigation may be helpful in other areas of law.