Three’s A Crowd: Potential Third-Party Liability in FCA Suits

The government rarely pursues third-party liability in FCA cases despite the routine involvement of consultants, auditors, and investors with companies alleged to have defrauded the government. In what appears to be an effort to expand the scope of FCA liability to a new class of defendants, the government in February pursued FCA claims against two third parties. Though these cases are not directly related, the timing suggests that third-party FCA liability may be a focus of the DOJ moving forward.

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