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Supreme Court Halts Expansion of False Claims Act Liability

 

John C. Grugan and Lisa M. Cuifolo

 

Originally published by Ballard Spahr Andrews & Ingersoll, LLP, 12 June 2008.

 
 
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Ballard Spahr Andrews & Ingersoll, LLP24 June 2008. The U.S. Supreme Court recently made plain that whistleblowers' allegations will be scrutinized more closely. In a unanimous decision, it reversed an appellate court decision that threatened to broaden liability under the False Claims Act. The Supreme Court held, in Allison Engine Co. v. United States ex rel. Sanders, that False Claims Act liability does not arise simply because government money is involved. Rather, there must be a direct link between the false statement and the federal government's decision to pay or approve the false claim. Click here to view the court opinion.

For more information, please contact John C. Grugan or Ronald A. Sarachan.

 
 

Copyright 2008 by Ballard Spahr Andrews & Ingersoll, LLP. all rights reserved.

John C. Grugan is a partner in the Litigation Department, co-partner-in-charge of the Corporate Compliance and Investigations Group and a member of the White Collar Litigation, Insurance and Business Litigation Groups in Ballard Spahr Andrews & Ingersoll, LLP.

Lisa M. Cuifolo is an associate in the Litigation Department and a member of the White Collar Litigation Group in Ballard Spahr Andrews & Ingersoll, LLP.

 
 

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Created: 24 June 2008
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