Measuring Damages In FCA Fraudulent Inducement Cases

Law360, New York (August 22, 2012, 1:00 PM EDT) -- In recent years, the government has pursued aggressive theories for calculating damages in False Claims Act fraudulent inducement cases. One of the core questions in these types of cases is whether single FCA damages should be measured by (1) the actual net loss suffered by the government, taking into account the value of goods or services provided by the contractor, or (2) the total amount paid by the government without regard to such value — even if the government is completely satisfied with the product or service....

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