While the Biden administration, Congress and private insurers argue about proposed cuts to Medicare Advantage and ways to shore up its financial future, another law that’s been in place for more than a century has proven to be the most effective way to reduce fraud in the system. The False Claims Act, which allows whistleblowers, people who’ve witnessed or have information about a fraud upon the federal government who are also known as relators, to sue companies for fraudulent activity. Also: … [Read more...]
False Claims Act Whistleblowers Protect Military Servicemembers and First Responders
Overcharging the government or billing the government for services not provided are some of the well-known ways federal contractors violate the False Claims Act. But providing defective or substandard materials as part of a government contract is also fraud. Defense contractor fraud and government procurement fraud siphon billions away from the more than $1 trillion Congress appropriates every year for the national defense. In the case of contracts to provide equipment for the military or … [Read more...]
California’s Prop 22 Mostly Upheld in Loss for Gig Workers, But Loophole Could Lead to Unionization
Proposition 22, California’s voter-approved ballot measure that allowed rideshare and delivery network companies like Uber, Lyft, and DoorDash to classify drivers as independent contractors rather than employees, should remain state law, a divided three-judge appellate panel ruled last month. The law had been struck down in 2021 by a lower court, but the state appealed. Prop 22, also known as the Protect App-Based Drivers and Services Act, is a 2020 ballot measure that received heavy … [Read more...]
Annual False Claims Act Report Shows Success of Non-Intervened Whistleblower Cases
The Department of Justice last month reported its False Claims Act report for fiscal year 2022, highlighting more than $2.2 billion in settlements and judgments, and the second-highest number of settlements in history. But even more revealing were figures that show the importance of non-intervened whistleblower cases. That is, lawsuits filed by whistleblowers under the False Claims Act that federal prosecutors declined to intervene in, leaving the whistleblowers and their attorneys, like … [Read more...]
Supreme Court Will Hear Fraud Loophole Case That Goes to the Heart of the False Claims Act
The Supreme Court will hear arguments this spring about the “biggest threat” the False Claims Act has faced since it was modernized four decades ago. It’s an issue that could undercut the FCA’s ability to hold bad actors accountable and recover taxpayer money—$72 billion and counting since the statute was revamped in 1986. The issue arose from the Seventh Circuit’s decision in U.S. ex rel. Schutte v. SuperValu Inc. nearly two years ago. That ruling defines the FCA’s knowledge of fraud … [Read more...]
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