During his confirmation hearing, Attorney General-designate Senator Jeff Sessions (R-AL) indicated he would continue to support the Department of Justice’s aggressive efforts to enforce the False Claims Act. Sessions described qui tam cases as “an effective method of rooting out fraud” because they encourage companies to be more vigilant. Sessions also suggested he believes cases […]
First Circuit Curtails Fraudulent-Inducement Theory Where Government Took No Action After Learning of FCA...
In its recent decision in D’Agostino v. ev3, Inc., No. 16-1126, 2016 WL 7422943, the First Circuit held that a relator could not proceed with its False Claims Act claim based on alleged fraud in the inducement, because the Food and Drug Administration has not withdrawn or suspended its approval of the defendant’s medical device […]
Federal regulators are paying more attention to how government contractors manage risks in their supply chains, yet the global nature of parts sourcing creates serious challenges for end-to-end monitoring. Over the last few years, the Department of Defense has issued and tightened rules for how contractors should detect and avoid counterfeit electronic parts, which could […]
Washington River Protection Solutions LLC will pay $5.275 million to settle allegations that it knowingly submitted false claims to the Department of Energy for overtime and premium pay and failed to comply with the contract’s internal audit requirements. The government alleged that, upon being awarded the contract, WRPS was advised by law enforcement of specific […]
Contractor’s Appeal Stayed Pending Further Development of Criminal Case Alleging Fraud; Armed Services Board...
Government’s motion to stay consideration of contractor’s appeal of the agency’s denial of its claim for Prompt Payment Act interest is granted, where the government’s affirmative defense of fraud is substantially similar to the allegations made in a criminal indictment filed against the appellant, and where the government’s criminal case could be harmed by discovery […]
The Ninth Circuit has granted a university’s petition to appeal a lower court’s finding that it violated the False Claims Act when it falsely certified it complied with Title IV of the Higher Education Act to obtain funding from the Department of Education. Several questions are certified for appeal, including whether claims for payment create […]
In a recent decision, the US Court of Appeals for the Ninth Circuit affirmed a district court’s grant of summary judgment in favor of a government contractor, where a relator had asserted that the contractor had violated material contractual requirements. In the contract at issue in United States ex rel. Kelly v. SERCO Inc., SERCO […]
Bradley Arant Boult Cummings has published its annual review of significant False Claims Act cases, developments, and trends. The review features observations and insights from 19 of Bradley’s FCA practitioners, who address areas such as materiality, falsity, the knowlingly standard, and false certifications. The review also covers the Supreme Court’s decision in Escobar and early […]
In United States ex rel. Hagerty v. Cyberonics, Inc., the First Circuit denied a relator’s attempt to connect aggressive sales techniques to false claims to the government. The relator alleged Cyberonics used fraudulent sales tactics to encourage medical providers to replace batteries in medical devices unnecessarily, which in turn led to false claims to the […]
The Securities and Exchange Commission announced that L-3 Technologies will pay $1.6 million to settle allegations that it failed to maintain accurate books and records and had inadequate internal accounting controls. An SEC investigation found that L3’s Army Sustainment Division (ASD) had improperly recorded $17.9 million in revenue from an Army contract by creating invoices […]