Fraudsters try a variety of methods to swindle the federal government, crossing industries and contracts, often diverting taxpayer funds to line corporate coffers. Fortunately, the False Claims Act — an old law that still has teeth — broadly prohibits fraud against the federal government and offers a way for courageous False Claims Act whistleblowers to expose it. For example: A sampling of three cases that were recently resolved illustrate the wide range of how the government can be … [Read more...]
False Claims Act Settlements Topped $2.9 Billion in Fiscal Year 2024
On January 15, 2025, the Department of Justice announced that False Claims Act settlements and judgments for the fiscal year ending September 30, 2024 totaled more than $2.9 billion. In making this announcement, Principal Deputy Associate Attorney General Benjamin C. Mizer emphasized the critical role that the False Claims Act plays in guarding against fraud on the government. Continuing a trend over recent years, more than half of the amounts recovered, over $1.67 billion of the $2.9 … [Read more...]
The False Claims Act Knowledge Standard: Supreme Court Will Hear the Fraud Loophole Case
The Supreme Court will hear arguments this spring on the False Claims Act knowledge standard, in a case described as 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. How the Seventh Circuit’s SuperValu Ruling Created the Loophole The issue arose from the Seventh Circuit’s … [Read more...]
Nursing Home Fraud: Poor Care Plus Government Funds Can Mean False Claims Act Liability
Some nursing homes have been taking advantage of vulnerable residents to milk government coffers, and the federal government promises an aggressive response to nursing home fraud. On June 15, the U.S. Department of Justice filed a False Claims Act complaint against an Ohio-based nursing home operator, alleging that three nursing homes run by the company “provided grossly substandard services” that didn’t meet basic standards of care. The False Claims Act prohibits companies from fraudulently … [Read more...]
False Claims Act Whistleblower Protection: Senate Committee Advances Strengthening Bill
The U.S. Senate Judiciary Committee recently voted to advance a bill strengthening the False Claims Act and False Claims Act whistleblower protection, the first significant amendment to the law in more than a decade. At an Oct. 28 hearing, the committee voted the False Claims Amendments Act of 2021 (S.2428) out of committee, advancing it to the Senate floor for consideration. The bill boasts bipartisan support. Its cosponsors include Sens. Chuck Grassley (R-Iowa) and Patrick Leahy … [Read more...]