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

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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.

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