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Determining The Scope Of FCA's Public Disclosure Bar

Law360, New York (February 18, 2016, 11:28 AM EST) -- Michael A. Schwartz

Kate A. Stanley Pharmaceutical, health care and government contracting companies that have faced federal False Claims Act lawsuits know that they can be high risk, high exposure and high anxiety. Indeed, FCA cases can involve years of costly litigation and the threat of potentially severe penalties.

One avenue of early defense is to invoke the so-called “public disclosure bar,” which prevents a person from pursuing an action based on certain publicly disclosed information unless that person qualifies as an “original source” of the information. After all, the purpose of the FCA is to expose allegedly hidden fraud, not...

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