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.

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

  • Lawsuit Ecosystem II: New Trends, Targets and Players

    Lawsuit Ecosystem II: New Trends, Targets and Players

    December 04, 2014

    This report, authored by a distinguished group of practitioners, explores the evolving lawsuit "ecosystem." It considers how plaintiffs' lawyers generate litigation and significant developments that will spur more lawsuits or rein in excessive liability. Read More

All Results for False Claims Act (FCA)

  1. In the News Today - December 2, 2013

    December 02, 2013 | News and Blog

    Will Halliburton v. Fund have implications beyond securities class actions?... Read More

  2. Four More Reforms That Would Improve the False Claims Act

    November 26, 2013 | News and Blog

    David Ogden and Jonathan Cedarbaum describe four reforms to improve the fairness, rationality and effectiveness of the False Claims Act.... Read More

  3. In the News Today - November 18, 2013

    November 18, 2013 | News and Blog

    Irvington, NJ is moving forward with a plan to use eminent domain to seize mortgages that are in foreclosure, becoming the second city to do so.... Read More

  4. Time to Fix the False Claims Act

    November 15, 2013 | News and Blog

    A new ILR report argues that the False Claims Act, while good at encouraging frivolous litigation, is simply ineffective at preventing fraud. ... Read More

  5. In the News Today - November 5, 2013

    November 05, 2013 | News and Blog

    Johnson & Johnson agreed to pay $2.2 billion to settle a DOJ investigation into the marketing of its antipsychotic drug Risperdal. ... Read More

  6. In the News Today - November 5, 2013

    November 05, 2013 | News and Blog

    Johnson & Johnson agreed to pay $2.2 billion to settle a DOJ investigation into the marketing of its antipsychotic drug Risperdal.... Read More

  7. Is FIRREA a Gamechanger?

    October 29, 2013 | News and Blog

    Analysis from Reuters says that a recent verdict against Bank of America could have profound implications for Wall Street.... Read More

  8. Curing What Ails the False Claims Act: Promoting Compliance and Taxpayer Savings

    October 24, 2013 | Video | Watch

  9. Litigation Trends, Targets, and Players

    October 24, 2013 | News and Blog

    ILR released its "New Lawsuit Ecosystem" report at the 14th Annual Legal Reform Summit on Wednesday.... Read More

  10. New Research on Lawsuit Trends Headlines Chamber's Legal Reform Summit

    October 23, 2013 | Press Release

    ILR today identified asbestos, class-action, data privacy, and False Claims Act lawsuits among the leading lawsuit trends, in a paper released at its 14th Annual Legal Reform Summit. ... Read More