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...]
United States Department of Justice Announces False Claims Act Settlements and Judgments in Fiscal Year 2024 Exceeded $2.9 Billion
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...]
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...]
Nursing homes that offer poor care and take government funds may be liable under the False Claims Act
Some nursing homes have been taking advantage of vulnerable residents to milk government coffers, and the federal government promises an aggressive response. 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 making claims for … [Read more...]
Senate committee advances bill strengthening whistleblower law
The U.S. Senate Judiciary Committee recently voted to advance a bill strengthening the False Claims Act, 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 (D-Vermont). The False Claims Act was originally … [Read more...]