False Claims Act (FCA)

The False Claims Act (FCA) penalizes those who knowingly submit false claims seeking government funds or to avoid paying government debts. Although well intentioned, the law has transformed into a profitable enterprise for plaintiffs’ lawyers and their clients, while hurting American businesses. Total monetary damages under the False Claims Act have risen from $272 million in 1992 to over $2.8 billion in FY 2018. Read More...

The law allows the government to pursue any government contractor suspected of making “false claims” about their goods or services to the government. The law also allows third-party whistleblowers (called qui tam relators) to sue in the name of the government and to keep a large part of any recovery. The statute also allows for treble damages (damages three times the amount of the alleged fraud) as well as significant penalties. Recently the DOJ moved to dismiss some qui tam FCA cases, signifying a positive change in an attempt to address substantial abuse regarding FCA cases. The DOJ has also made several important and helpful policy changes that provide credit to companies that have appropriate compliance programs, self-report FCA violations, assist the investigation and remediate any harm done to the government.

While the need for an anti-fraud statute is clear, plaintiffs’ lawyers have benefited enormously from these FCA lawsuits. Broad language and over-enforcement practices have stimulated significant abuse, turning, in some cases, what should be simple disagreements and paperwork errors into claims for fraud. The U.S. Chamber Institute of Legal Reform (ILR) actively works to promote reforms that will restore fairness and transparency.

01/01/2019

Suggested Resources

Research
  • Lighting the Way: FCA Reform and Compliance Program Credit

    Lighting the Way: FCA Reform and Compliance Program Credit

    June 27, 2018

    This paper contends that in order to encourage companies to create and sustain a culture of consistent compliance, particularly with regard to the federal False Claims Act, the U.S. Department of Justice should formalize a policy of offering credit for companies that implement effective compliance and ethics programs. Read More

  • The Great Myths of State False Claims Acts

    The Great Myths of State False Claims Acts

    February 28, 2018

    The 2018 update to "Great Myths of State False Claims Acts" shows that the whistleblowers' bar is continuing to capitalize on state qui tam False Claims Acts (FCAs), harvesting windfall awards from states and the federal government. The paper also points out that the dubious benefits of implementing a state FCA turn into a clear financial net negative when states allow their FCAs to fall out of compliance with federal standards. Read More

All Results for False Claims Act (FCA)

  1. New Paper Highlights Need for Changes in False Claims Act

    March 27, 2020 | Blogs

    What do access and affordability of health care, the False Claims Act, and Medicare Advantage plans have in common? Turns out, quite a lot.... Read More

  2. Official Says DOJ Probing TPLF in False Claims Act Cases

    January 28, 2020 | News

    During a recent keynote address, Deputy Associate Attorney General Stephen Cox said the U.S. Department of Justice (DOJ) is looking into the use of third party litigation funding (TPLF) in False Claims Act cases, Law360 reports.... Read More

  3. Pending Seventh Circuit Decision Could Impact False Claims Dismissals

    January 07, 2020 | News

    An appeal before the Seventh Circuit could determine how much deference the U.S. government gets in dismissing whistleblower False Claims Act cases, Bloomberg Law reports.... Read More

  4. In the News Today - August 28, 2019

    August 28, 2019 | News

    Proposed California Legislation Would Greatly Expand State False Claims Act... Read More

  5. In the News Today - August 22, 2019

    August 22, 2019 | News

    Compliance and Legal Experts Suggest Cybersecurity Will Be the Next Big FCA Wave... Read More

  6. In the News Today - July 18, 2019

    July 18, 2019 | News

    New York Federal Judge Tossed FCA Suit Challenged By DOJ... Read More

  7. In the News Today - May 20, 2019

    May 20, 2019 | News

    "Inside The New FCA Cooperation Credit Guidelines"... Read More

  8. DOJ Releases False Claims Act Cooperation Guidance

    May 08, 2019 | News

    The U.S. Department of Justice unveiled new guidance to describe how companies can earn cooperation credit in False Claims Act investigations, Law360 reports.... Read More

  9. In the News Today - March 5, 2019

    March 05, 2019 | News

    "Making The Granston Memo Work For FCA Defendants"... Read More

  10. In the News Today - February 19, 2019

    February 19, 2019 | News

    "Disputes Heating Up Over Gov't Qui Tam Dismissal Authority... Read More