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Published on February 27, 2020 • Compliance

Imputation of False Claims Act Liability to Prime Contractors

Sarawut Aiemsinsuk | Shutterstock

In the recent issue of the American Bar Association’s The Procurement Lawyer, Morrison & Foerster Government Contracts associate Sandeep Nandivada, with assistance from law clerk David Allman, discuss FCA liability for prime contractors in this issue of the publication. “This article discusses how subcontractor misconduct can give rise to FCA liability for prime contractors who have not committed any wrongdoing directly,” they write. “The Supreme Court of the United States has explicitly held that, although a subcontractor does not have privity of contract with the government, it still may be subject to FCA liability by causing a prime contractor to submit a false claim to the government on the subcontractor’s behalf. But what of the prime contractor’s liability when one of its subcontractors has committed an FCA violation? Under what circumstances can a prime be held liable for its subcontractors’ misconduct?”