The False Claims Act (FCA) has recently garnered significant attention at the Supreme Court. Our final installment of the series, “The FCA at the Supreme Court,” delves into current active cases, offers commentary on newly issued decisions, and provides important takeaways designed to assist government contractors in safeguarding their business assets in the face of a possible FCA claim or during FCA litigation.
The FCA is a tool the government utilizes in its fight against fraudulent claims to government programs. A unique aspect of this Act is the qui tam provision, which permits private parties, called relators, to file suits on behalf of the government.
However, this provision also invites controversy with concerns about the motivations of relators and their counsel, leading to the question of whether the FCA should be treated as a public or private enforcement mechanism. This question has led to even more uncertainty in legal circles due to government dismissals of FCA cases and the related intervention or non-intervention decision made by federal agencies.
The issue of government intervention and dismissal of FCA cases is critical for businesses that contract with the federal government. For such businesses, the risk of an FCA lawsuit brought by a relator, and the potential for costly litigation or significant damages, should be a central concern. Understanding the chaning dynamics around government intervention and dismissal is crucial in mitigating this risk.
We strongly urge businesses who contract with the government, and the legal professionals representing these businesses, to stay informed about developments of FCA at the Supreme Court. This falls within the broader remit of legal risk management, where staying updated is key in order to navigate successfully within this complex legal landscape.