Whistleblower Retaliation Liability Under the False Claims Act for PPP Loan Recipients


Earlier this year, we forecasted that the Paycheck Protection Program (PPP) and other small business loan programs initiated through the Coronavirus Aid, Relief, and Economic Security (CARES) Act would generate a surge in new FCA matter reporting. This month, a former employee of a government contracting firm filed a complaint against the firm under the federal FCA anti-retaliation clause and Florida state whistleblower statutes. This lawsuit serves as a reminder for recipients of PPP loans to ensure that they are properly using funds. Otherwise, recipients risk enforcement under the FCA: not only by the federal government and qui tam relators, but also under its whistleblower provisions.