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False Claims Act Statistics, News & Analysis

A Cure for the Common Qui Tam? Escobar’s Materiality Standard and Government Inaction has Pharma Defendant Feeling Good Again

The Third Circuit recently joined the growing number of circuits refusing to find materiality where the government fails to act or intervene in the face of alleged noncompliance. See United States ex rel. Petratos v. Genentech, No. 15-3805 (3rd Cir. May 1, 2017). The D.C. Circuit; First Circuit; and Seventh Circuit all have reached similar conclusions. The Ninth Circuit will address this issue in the coming months in United States ex rel. Rose v. Stephens Institute.

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Keep Your Friends Close and Your Subcontractors Even Closer: Prime and Sub Mostly Win Motion to Dismiss Against Second-Tier Sub

The D.C. District Court recently dove headfirst into the complexities of government contracting (and subcontracting) and dismissed most of a hydra-headed 77-page FCA complaint against a prime contractor and first-tier subcontractor brought by executives of a second-tier subcontractor. United State ex rel. Keaveney v. SRA Int’l, Inc., No. 13-855, 2016 WL 6988787 (D.D.C. Nov. 29, 2016). That a subcontractor’s executives brought an FCA action against the contractors that hired them is by itself worth noting. But the opinion, too, offers a mixed bag of assuaging certain worries for government contractors while highlighting new ones.

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Red Meat for Escobar: New Compliance Burdens Under the Fair Pay and Safe Workplaces Final Rule

UPDATE: A U.S. District Court Judge in Beaumont, Texas, has issued a nationwide preliminary injunction. Read the e-lert here.

As courts across the nation search for equilibrium after the Escobar decision, potential FCA defendants are watching closely to see the measure of their potential FCA liability for failure to observe contractual, regulatory, or legal obligations. On October 25, 2016, these possibilities will grow exponentially for many government contractors when the so-called Fair Pay and Safe Workplaces final rule (“the Rule”) goes into effect. See 81 Fed. Reg. 58562 (August, 25, 2016). 

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In the Eye of the Storm: Recovering from Wind, Rain, and False Claims Act Liability After a Natural Disaster

With hurricane and tropical storm season in full force, large parts of America face, or anticipate, the prospect of recovering from a natural disaster. Images of destruction wrought by Hurricanes Katrina, Rita, Irene, and Sandy have etched themselves into America’s collective consciousness. In addition to the human toll, these events posed an incredible financial cost. The four hurricanes mentioned above caused approximately $208.4 billion in destruction, requiring states to compensate quickly by rebuilding infrastructure such as roads, bridges, homes, public utilities, and to provide services to those displaced by the damage.

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