US Court of Federal Claims Clarifies the Statute of Limitations for CDA Anti-Fraud Claims

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While most federal contractors are eminently familiar with the False Claims Act – government’s most potent weapons for prosecuting false claims – the anti-fraud provision of the Contract Disputes Act does not receive nearly as much attention in the headlines. CDA anti-fraud cases are rarer than FCA cases for a couple reasons. First, the government’s remedies under the CDA pale in comparison to the robust deterrents available under the FCA, which include five-figure fines (between $11,000 and $22,000 per claim) and potential treble damages. Second, the government is limited to enforcing FCA fraud claims in the federal court system, which complicates matters when the government seeks to assert FCA counterclaims as leverage in cases pending in the Civilian Board of Contract Appeals or the Armed Services Board of Contract Appeals.

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