Law360, New York (March 4, 2013, 12:52 PM EST) -- With increasing frequency, employees and whistleblowers are using the False Claims Act to challenge claims for reimbursement based on alleged regulatory noncompliance. As government regulation of business expands, however, courts have struggled to draw the line between fraud and falsehood befitting the FCA, and mere regulatory violations properly left for government agencies. Drawing that line requires answering a seemingly simple question of law: When is a government claim false? Certainly when the government is knowingly billed for defective goods or services that are not provided as certified. But what if the goods and services meet industry standards, yet are the product of a process that is not in compliance with all applicable regulations? At what point does regulatory noncompliance cross the line into actually false claims giving rise to FCA liability?...