Statutory Noncompliance Doesn't Always Violate The FCA

Law360, New York (April 27, 2012, 1:24 PM EDT) -- What happens when a government contractor that thinks its contract performance complied with applicable statute or regulation later learns that it actually was out of compliance? Are its invoices for that performance false claims that violate the False Claims Act?

The answer depends on whether the contractor acted “knowingly.” A March 30, 2012, decision of the Fourth Circuit Court of Appeals highlights the fact that proving a False Claims Act violation requires not only the submission of a claim that is false, but also that the...
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