The past year has seen substantial activity by the federal courts in guarding against government overreach in False Claims Act cases. One of the principal areas courts have focused on is the FCA’s knowledge requirement — i.e., FCA liability can only be imposed where a person violates the act knowingly.
Two recent decisions, from the U.S. Court of Appeals for the Seventh Circuit and the U.S. Court of Appeals for the Fourth Circuit, clarify the FCA’s knowledge requirement in a way that should make it easier for defendants to obtain a dismissal at the early stages of an FCA case and that provide a tool to potentially limit costly discovery for cases that are not dismissed.
Source:
- Bradley Arant Boult Cummings: 2 Recent Decisions Highlight Ambiguity As FCA Defense
