In a recent False Claims Act (“FCA”) opinion that has already been heavily criticized, the Fourth Circuit held that a $24 million penalty was not “excessive” under the Constitution even where damages were not proven at trial and where the government had paid only a total of $3.3 million for the services in question. United States ex rel. Bunk v. Gosselin World Wide Moving, N.V., No. 12-1369 (4th Cir. Dec. 18, 2013).
Continue Reading Fourth Circuit Finds $24 Million False Claims Act Penalty Not Excessive Even Where No Damages Proven at Trial
Qui Tam
An FCA Kerfuffle: First Circuit Reaffirms the Intent of the “First to File” Rule and Deepens Circuit Split
By Sheppard Mullin on
The First Circuit has added its say on the meaning of the False Claims Act’s “first to file” rule (31 U.S.C. § 3730(b)(5)) by holding that a first-filed complaint will preclude a later-filed suit, even when the first complaint is found insufficient under Rule 9(b) particularity requirements. See United States ex rel. Heineman-Guta v. Guidant Corp., 2013 WL 2364172 (1st Cir. May 31, 2013). There is already a circuit split on this issue between the Sixth Circuit and the D.C. Circuit, and the First Circuit’s recent decision further deepens this split. Time will tell if the U.S. Supreme Court will ultimately weigh in on the issue.
Continue Reading An FCA Kerfuffle: First Circuit Reaffirms the Intent of the “First to File” Rule and Deepens Circuit Split
Common Sense Prevails Once Again: District Court FCA Ruling Serves As Reminder That Whistleblowers Need to Prove Recklessness Too
By Sheppard Mullin on
Posted in False Claims, FCA, Federal Supply Schedule, GSA Schedule, Qui Tam, Recklessness, Relator, Scienter, TAA, Trade Agreements Act
By Christopher Loveland and Jonathan Aronie
While multi-million dollar False Claims Act (FCA) settlements paid by Government contractors get the lion’s share of the press, those with an attentive eye will have noticed a recent steady stream of more “contractor friendly” FCA decisions flying just under the national press’s radar. These cases, all arising in the context of the GSA Multiple Award Schedule program, serve as timely reminders that the FCA is not a blank check for opportunistic relators (plaintiffs/whistleblowers), and that relators must be in possession of facts actually supporting their allegations before walking into court. [1]…