DC Circ. Ruling Gives FCA Defendants An Easy Out, US Says

Law360, Washington (February 9, 2016, 11:03 PM EST) -- The federal government asked the D.C. Circuit on Monday to undo its reversal of a $580,000 statutory damages award in a False Claims Act case against a water pump company, saying an appellate panel twisted the law's purpose in permitting the company to claim ignorance of fraudulent conduct.

If allowed to stand, a circuit court panel's November decision over what constitutes a "regular commission" payable to a Nigerian sales agent would fundamentally weaken the FCA by establishing that a defendant could escape liability if the government doesn't explicitly warn against every type of conduct it would consider fraud, even if the...

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