The Centers for Medicare and Medicaid Services (“CMS”) has issued a proposed rule which would amend the existing regulations for reporting and returning identified overpayments (the “Proposed Rule”). Specifically, with respect to the meaning of “identification” of overpayment, CMS proposes to eliminate the “reasonable diligence” (or traditional negligence) standard and replace it with the False Claims Act’s (“FCA’s”) standard of “knowing” and “knowingly” (i.e., reckless disregard or deliberate ignorance of a potential overpayment).

Continue Reading CMS Proposes to Amend Overpayment Rule, Remove Potential Overpayment and False Claims Act Liability for Mere Negligence

On Wednesday, October 6, 2021, the Department of Justice (“DOJ”) announced a new Civil Cyber-Fraud Initiative to enforce cybersecurity standards and reporting requirements. The Initiative will use DOJ’s civil enforcement mechanisms, namely the False Claims Act, to pursue government contractors and federal grant recipients that “knowingly provid[e] deficient cybersecurity products or services, knowingly misrepresent[] their cybersecurity practices or protocols, or knowingly violat[e] obligations to monitor and report cybersecurity incidents and breaches.” DOJ will not limit enforcement to entities; individuals also can be held accountable for cybersecurity-related fraud. Under the False Claims Act, penalties for such violations could be substantial, including treble damages.

Continue Reading DOJ Announces Civil Cyber-Fraud Initiative To Enforce Contractor Cybersecurity Compliance