Law.com Subscribers SAVE 30%

Call 855-808-4530 or email GroupSales@alm.com to receive your discount on a new subscription.

General Schemes vs. Specific Claims

By Jacqueline Wolff and Nirav Shah
July 02, 2014

The qui tam provisions of the False Claims Act, which allow private individuals (“relators”) to bring suit on behalf of the federal government and keep a percentage of the proceeds, continue to be some of the most potent weapons in the government's antifraud arsenal. In fiscal year 2013, over three-quarters of the $3.8 billion recovered by the Department of Justice (DOJ) from FCA cases came from cases brought by relators. Over that same period, relators brought 752 new FCA suits.

Congress has telegraphed its belief in the value of whistleblower suits: In recent years, blockbuster legislation, such as the Affordable Care Act and the Dodd-Frank Act, has increased the potential bounties and legal protections available to whistleblowers.

FCA suits present significant challenges to defendants, including potentially massive actual and statutory damages, criminal investigations arising out of civil allegations, exclusion or debarment from government contracts, and the significant reputational harm that comes when a company is accused of fleecing the government. Faced with these risks, FCA defendants have found appropriate shelter in Rule 9(b) of the Federal Rules of Civil Procedure, which requires that a party alleging fraud “state with particularity the circumstances constituting fraud.” Rule 9(b) allows dismissal of a complaint early in the course of a lawsuit, prior to expensive and intrusive discovery, if a defendant can show that the relator has not alleged (and, perhaps, does not possess) sufficient detail as to the alleged fraud against the government.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at customercare@alm.com or 877-256-2473

Read These Next
Spurred By Data Breaches, CLOs Are Increasing Cybersecurity Leadership Role Image

Chief information officers still bear the brunt of cybersecurity worries at many companies. But a study by the Association of Corporate Counsel Foundation finds that chief legal officers are increasingly taking a leadership role in cybersecurity strategy.

GCs Want to Tap Into AI But Lack Roadmap, Report Shows Image

General counsel are eager to tap the promise of generative AI. But without clear technology road maps, many legal departments are struggling to turn that interest into action.

Is Google Search Dead? The Key to Thriving In an AI-Driven World Image

Part Two of this two-part articleexamines practical steps marketers must take to succeed in this changing landscape by embracing a multichannel, AI-driven approach to their marketing and PR efforts. This means rethinking your strategy to build direct connections with your audience, using platforms that elevate your visibility and focusing on storytelling that resonates.

Shifting Crypto and Cyber Enforcement Priorities In SEC Image

When the SEC issues the next annual enforcement report for fiscal year 2025, we expect securities offering actions and investment adviser actions will almost certainly be up, and the “crypto” and “cyber” cases will almost certainly be down. Public statements by the new SEC administration have said as much, but even more telling than public statements are the allocation of limited enforcement resources.

Seventh, Ninth Court Rulings Tighten Reach of Federal Video Privacy Protection Act Image

The VPPA may be nearly four-decades old and video-rental stores largely a thing of the past, but the rise of online content, streaming services and ancillary activities has brought with it frequent litigation based on the VPPA. The key challenge in these litigations is how to interpret the VPPA’s 1980s terms in light of today’s digital advances.