Cautionary Tales In Recent FCA Decisions

Law360, New York (October 16, 2012, 2:33 PM EDT) -- The federal courts have recently provided a number of cautionary tales for government contractors and participants in federal programs facing an ever-expanding universe of potential False Claims Act lawsuits and allegations. The recent decisions highlight the risk of disputes over complex regulations and proposal representations, aggressive damages theories advanced by plaintiffs, government investigators acting as FCA relators, and the prospect of suspension of the FCA’s statute of limitations in the civil context.

Knowledge and Reckless Disregard

In a decision issued earlier this month, the Sixth Circuit...
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