Is the Government Entitled to a Windfall Under the FCA? One Judge Said Yes, but Now the DC Circuit Could Decide


The DC Circuit may soon determine how to calculate damages offsets for False Claims Act defendants after a recently certified interlocutory appeal. The appeal arises out of a longstanding FCA case involving Zylon body armor shields (Z Shield), which were incorporated as part of bulletproof vests. The vests were sold to law enforcement agencies, which were eligible for partial reimbursement from the federal government. In 2008, the United States filed separate FCA suits against several defendants related to the Z Shield vests. Some defendants have settled, but litigation remains ongoing.