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Insurance Coverage for FCA Lawsuits
For companies that have business dealings with the government, the False Claims Act (“FCA”), 31 U.S.C. ” 3729-3733, needs no introduction. The FCA, which at a high level prohibits making false claims to obtain payment from the federal government, has led to billions of dollars in recovery by the United States Department of Justice (DOJ). Indeed, in each of the last four years, the DOJ has recovered more than $3 billion, including $3.8 billion in 2013 alone. See Justice Department Recovers $3.8 Billion from False Claims Act Cases in Fiscal Year 2013, Dept. of Justice, http://1.usa.gov/1VyZsNn. In October 2014, a federal jury handed down a $175 million verdict against a Texas manufacturing company accused of making false claims in connection with the installation of highway guardrails. See Trinity Industries Whistleblower Awarded $175 Million in Guardrail Suit, The Wall Street Journal, http://on.wsj.com/1LX9g24. With the potential for trebled damages, attorneys' fees, and penalties under the FCA, that figure could increase.
The prevalence of FCA claims against companies is compounded by the fact that private persons ' called “relators” ' are able to file FCA suits on behalf of the government as qui tam plaintiffs (as derived from the Latin phrase ” qui tam pro domino rege quam pro se ipso in hac parte sequitur,” meaning “he who sues in this matter for the king as well as for himself”). The FCA entitles relators to receive up to 30% of the amount recovered by the government through qui tam actions. 31 U.S.C. ' 3730(d). Companies face additional liability under the FCA for retaliating against purported whistleblowers. In recent years, the FCA has been further bolstered by amendments that provide additional inducements and protections to qui tam plaintiffs.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.