Two Courts Confirm Penalties Not Yet Issued Do Not Support Reverse False Claims

In separate cases, the D.C. Circuit and the Tenth Circuit recently held that liability for reverse false claims cannot be based on contingent obligations to pay the government (meaning obligations to pay that may arise after future discretionary actions), reaffirming that when Congress amended the FCA in 2009 to define the term “obligation,” it intended that liability would result for reverse false claims only where there are failures to pay specific, definite obligations owed to the government.

Read the full post at Vinson & Elkins