In a review of the U.S. Supreme Court’s 2023 term, key decisions from two landmark cases have offered new insights into the interpretation of scienter and government intervention as respectful to the False Claims Act (FCA), 31 U.S.C. § 3729. These cases include United States ex rel. Schulte v. SuperValu Inc. and another case against Executive Health Resources.
In the case of United States ex rel. Schulte v. SuperValu Inc, the Supreme Court unanimously held on June 1, 2023, that the determination of whether a defendant acted “knowingly” is dependent on their own subjective belief when submitting a claim. This ruling stands even if an objectively reasonable interpretation of the situation differs.
Moving onto the other case of significance, the Supreme Court granted certiorari to determine whether the government’s intervention in a case could result in the lawsuit being considered as being brought by a “public official” which is defined under the Act. New legal trails are being blazed by these matters, opening up uncharted avenues for understanding and applying the FCA in the wider landscape of US litigation.
The rulings of these two cases in the 2023 term will offer plenty of food for thought for legal professionals, particularly those dealing with cases related to the False Claims Act. These cases underscore the importance of understanding the intricacies of the FCA and considering the potential impacts of these rulings on future litigation and potential liabilities.
Ultimately, what these cases tell us is that the FCA continues to be a dynamic area of the law. And, with these new court interpretations, the industry will need to remain vigilant as the legal landscape continues to change.