High Court Sets Stage For Showdown On 2 Big FCA Issues

Law360, New York (July 1, 2014, 4:26 PM EDT) -- On July 1, 2014, the U.S. Supreme Court granted the petition for certiorari in KBR Inc. v. United States ex rel. Carter. The petition presented two questions: (1) whether the Wartime Suspension of Limitations Act applies to claims of civil fraud brought by qui tam relators, and (2) whether the False Claims Act's first-to-file rule is an absolute bar or whether it permits subsequent actions so long as the first-filed action had been dismissed on nonmerits grounds prior to filing of the subsequent action. The Fourth Circuit's decision was unfavorable to potential FCA defendants on both issues. The Supreme Court's decision to grant certiorari is important news for all companies that do business with the government, as both issues significantly impact potential FCA exposure....

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