After the False Claims Amendments Act of 2021 (S. 2428) introduced this summer took heavy criticism, Senator Chuck Grassley (R-Iowa) has introduced a “manager’s amendment” that overhauls the bill’s materiality provision. Gone is the muddled “burden-shifting” approach to materiality. In its place, the proposed legislation now states: “In determining materiality, the decision of the Government to forego a refund or pay a claim despite actual knowledge of fraud or falsity shall not be considered dispositive if other reasons exist for the decision of the Government with respect to such refund or payment.” (emphasis added).
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