Law Commons^™

Schutte & Polansky: Shifting The Landscape Of False Claims Act Litigation & Compliance, Jessica Tillipman, Teddie Arnold

GW Law Faculty Publications & Other Works

The Supreme Court issued two opinions in June 2023 that are set to alter the False Claims Act (“FCA”) landscape for years to come. In United States ex rel. Schutte v. SuperValu Inc., 143 S. Ct. 1391 (2023) the Court elevated the scienter element of the FCA in cases dealing with a defendant’s compliance with law or regulation, whereby no longer can a defendant point to an objective interpretation of an ambiguous law or regulation to the exclusion of a company’s subjective knowledge at the time of claim submission. In United States, ex rel. Polansky v. Exec. Health Res., Inc., …

Privacy Qui Tam, Peter Ormerod

College of Law Faculty Publications

Privacy law keeps getting stronger, but surveillance-based businesses have proven immune to these new legal regimes. The disconnect between privacy law in theory and in practice is a multifaceted problem, and one critical component is enforcement.

Today, most privacy laws are enforced by governmental regulators—the Federal Trade Commission, the nascent California Privacy Protection Agency, and state attorneys general. An enduring impasse for proposed privacy laws is whether to supplement public enforcement by using a private right of action to authorize individuals to enforce the law.

Both of these conventional enforcement schemes have significant shortcomings. Public enforcement has proven inadequate because …

Qui Tam Litigation Against Government Officials: Constitutional Implications Of A Neglected History, Randy Beck

Scholarly Works

The Supreme Court concluded twenty-five years ago, in Lujan v. Defenders of Wildlife, that uninjured private plaintiffs may not litigate “generalized grievances” about the legality of executive branch conduct. According to the Lujan Court, Congress lacked power to authorize suit by a plaintiff who could not establish some “particularized” injury from the challenged conduct. The Court believed litigation to require executive branch legal compliance, brought by an uninjured private party, is not a “case” or “controversy” within the Article III judicial power and impermissibly reassigns the President’s Article II responsibility to “take Care that the Laws be faithfully executed.” The …

The False Claims Act: A Useful Tool In The Fight Against Public Corruption, John Carroll

Center for the Advancement of Public Integrity (Inactive)

When most people think of the available tools in the fight against public corruption, they think of the criminal laws and courts, or the oversight provided by government watchdog agencies. The False Claims Act (or FCA) provides another way in which public integrity can be enhanced, and it is a tool that has many advantages. First, the FCA is a civil statute, which means that as compared to criminal litigation, the FCA requires a lower burden of proof, and carries the possibility of a high damages award. Second, the False Claims Act permits citizen watchdogs to bring claims that the …

Financial Rewards For Whistleblowing Lawyers, Nancy J. Moore, Kathleen Clark

Faculty Scholarship

The federal government relies increasingly on whistleblowers to ferret out fraud, and has awarded whistleblowers over $4 billion under the False Claims Act and the Dodd-Frank Wall Street reform and Consumer Protection Act. May lawyers ethically seek whistleblower rewards under these federal statutes? A handful of lawyers have tried to do so as FCA qui tam relators. They have not yet succeeded, but several court decisions suggest that they might be able to do so under confidentiality exceptions to state ethics law, which several courts have held are not preempted by the FCA. No lawyer has been publicly identified as …

False Claims Act: An Inspector General's Best Friend, John Carroll

Center for the Advancement of Public Integrity (Inactive)

Federal and State False Claims Acts facilitate recovery against contractors who bill the government fraudulently. FCAs have many components which make them potent anti-corruption weapons.

Reining In The Rogue Squadron: Making Sense Of The "Original Source" Exception For Qui Tam Relators, Dayna Bowen Matthew

Publications

The qui tam provision of the Civil False Claims Act effectively serves to expand the government’s capacity to combat fraud, but also invites abusive prosecution against blameless public contractors. Although the public disclosure jurisdictional bar is designed to permit worthy claimants to proceed as whistle blowers while precluding parasitic opportunists from unfairly imposing litigation costs and reaping undeserved awards, the inconsistent judicial interpretation of the original source exception threatens predictable and just law enforcement. Christopher Alexion’s note categorizes the approaches courts have taken as ranging from permissive, to “middle ground” to restrictive based on the timing of the relator’s disclosure, …

Private Enforcement Of Systemic Risk Regulation, Heidi Mandanis Schooner

Scholarly Articles

The failure of the regulatory system is at least one of the contributing causes to the 2008 Financial Crisis. The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) will have a far-reaching impact on the financial services industry particularly in its attempt to regulate systemic risk. The Dodd-Frank Act, however, does not sufficiently address the problem of agency discretion generally, or the problem of an agency’s discretion to forebear, in particular. Under Dodd-Frank, the agencies retain considerable discretion and the effectiveness of the new regime depends on the optimal exercise of such discretion. This Article maintains that an …

The Flawed Nature Of The False Marking Statute, Elizabeth I. Winston

Scholarly Articles

In 2005, the United States Court of Appeals for the Federal Circuit rendered a decision on an “issue of first impression” interpreting a one hundred sixty-three year old provision of the United States Code - the “false marking” statute embodied in 35 U.S.C. § 292. It is false marking to mark as patented an unpatented article if done with the intent to deceive the public and, as such, is a fineable offense. The false marking statute remains one of only a handful of qui tam actions left intact from a rich history of varied incentives provided by the government for …

Restating The "Original Source Exception" To The False Claims Act's “Public Disclosure Bar”, Joel D. Hesch

Faculty Publications and Presentations

The False Claims Act (FCA) is the Department of Justice’s (DOJ) primary litigative tool to combat fraud under federal government programs, including as Medicare and the military. The FCA provides for triple damages and civil penalties. It also contains a unique qui tam provision, which allows a whistleblower, known as a “relator,” to file a FCA lawsuit on behalf of the government and receive a share of 15-25% in the recovery. The DOJ has recovered $20 billion under the FCA from companies cheating the government, and has paid out over $2 billion in citizen rewards. The FCA contains a “public …

The Pebble In The Shoe: Making The Case For The Government Employee, Joan R. Bullock

Journal Publications

This Article addresses the issue of whether federal government employees should be able to use the False Claims Act, also known as the "federal whistleblower statute," to personally benefit from uncovering fraud against the government during the course of their employment. The Article addresses, therefore, the apparent collision between two policies: on the one hand, the federal government has a compelling interest in vigorously pursuing those contractors who defraud it; on the other hand, the government has an interest in not encouraging its own investigators to enrich themselves by bringing personal suits for damages against the target of their investigations.