Third Circuit Applies FCA Revision Retroactively in Circuit Split


A three-judge panel of the Third Circuit has unanimously ruled that an amendment to the False Claims Act that eased the burden of proof on whistleblowers applies retroactively to any case that was still pending when the Supreme Court issued a ruling that the law was designed to address. This decision agrees with the Sixth and Seventh Circuits, but disagrees with Fifth, Ninth, and Eleventh Circuits.

In this case, the court upheld a $1 million judgment against The Farfield Company for underpaying workers on a rail project that concluded in 2007, rejecting the company’s claim that its conduct occurred too early for the Fraud Enforcement and Recovery Act of 2009 to apply.