3rd Circ. Decision Deepens Split On Crucial FCA Rule

Law360, New York (June 19, 2014, 7:50 PM EDT) -- The Third Circuit this month became the latest appeals court to take a position on how precisely whistleblowers must plead False Claims Act suits, adopting a more lenient approach that deepens a circuit split and once again spotlights potential U.S. Supreme Court intervention on a hotly debated issue.

In a unanimous decision, a Third Circuit panel all but rejected a stricter pleading standard that four circuits typically apply when interpreting Federal Rule of Civil Procedure 9(b), which says fraud suits must describe misconduct “with particularity.” Those courts generally insist that complaints include samples of actual false claims, but the Third Circuit...

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