Fighting FCA Retaliation Claims Against Corporate Execs

Law360, New York (December 23, 2014, 10:31 AM EST) -- Recent cases have narrowed the potential scope of retaliation cases brought under the federal False Claims Act against companies and their executives. The FCA, 31 U.S.C. § 3729, et seq., is a powerful tool used to combat fraud and overbilling of the federal government. FCA actions may be initiated directly by the federal government or, under the qui tam provisions, by so-called whistleblowers authorized to sue on behalf of the government and to share in any recovery. The anti-retaliation provision of the FCA, 31 U.S.C. § 3730(h), provides protection to whistleblowers and permits them to bring retaliation claims against those who discriminate against them in the terms and conditions of their employment because of lawful acts taken in furtherance of an action under the FCA. Based on recent amendments to the FCA, some private parties have attempted to maintain broad retaliation claims, including against company executives and supervisors. Fortunately, a majority of federal district courts have rejected these efforts....

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