In a unanimous ruling by the Supreme Court on June 1, 2023, a notable change in False Claims Act (FCA) litigation has been established. The landmark decision from two consolidated cases, U.S. ex rel. Proctor v. Safeway Inc. and U.S. ex rel. Schutte et al. v. SuperValu Inc., has set a new standard — now a defendant’s subjective beliefs must be taken into account when determining if they knowingly violated the FCA. JD Supra reports.
This pivotal ruling will significantly influence future FCA litigation, as now, the individual beliefs of the defendant themselves — whether they thought they were committing fraud — is a factor in court considerations.
This departure from assessing only objective facts fundamentally alters the approach of proving violations under the FCA. It gives room for more nuanced arguments and defenses and represents a remarkable shift in the judicial interpretation of the FCA’s ‘knowing’ standard.
More details regarding the ruling and its broader ramifications are yet to unfold. Legal professionals, particularly those dealing with FCA cases, should closely monitor further developments related to this judgment.