The FCA’s qui tam provisions are intended to incentivize individuals who have legitimate information about fraud on the government that would otherwise go undetected to bring those issues forward. Increasingly, “whistleblowers” – including entities established for the sole purpose of
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The Enhanced Scrutiny blog, published by Sidley Austin LLP, focuses on litigation and legal developments related to mergers and acquisitions (M&A), corporate governance, and securities law. It covers topics such as federal forum provisions in securities litigation, challenges to corporate bylaws, whistleblower complaints and board responsibilities, jurisdictional issues in emerging areas like cryptocurrency, and enforcement actions under the False Claims Act (FCA). The blog also addresses regulatory compliance, corporate governance best practices, and significant court decisions impacting corporate and securities litigation strategies.
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DOJ’s New FCA Settlements Underscore Trump Administration’s Focus on Tariff and Customs Compliance
Two recent settlements involving imports from the People’s Republic of China (“PRC”) illustrate the U.S. Department of Justice’s (“DOJ”) commitment to rapidly stepping up enforcement against tariff evasion and customs fraud through the False Claims Act (“FCA”). As we covered…
District Court Recognizes that Even Minimum FCA Civil Penalties Could Be Unconstitutional Under the Excessive Fines Clause
Recently, the Southern District of New York issued a decision imposing FCA penalties that provides further guidance on the circumstances under which such penalties may violate the Eighth Amendment.
In United States ex rel. Bassan v. Omnicare, Inc. (S.D.N.Y. July…
First Circuit Affirms Dismissal of Qui Tam for Failing But-For Test Linking AKS Violations to FCA Liability
In U.S. ex rel. Flanagan v. Fresenius Med. Care Holdings, Inc., 23-1305 (1st Cir. June 27, 2025), the First Circuit recently affirmed dismissal of an FCA complaint because it failed to adequately plead that alleged kickbacks were the “but for”…
Department of Justice Announces 2025 Inflationary Adjustments to FCA Penalties
The Department of Justice has published the inflationary adjustments to the civil monetary penalties associated with False Claims Act violations. Under the Balanced Budget Act of 2015, annual inflationary adjustments of the penalties is required. Adjustments are to be based…
DOJ Announces Reinvigorated False Claims Act Cooperation with the Department of Health and Human Services
On July 2, 2025, the U.S. Department of Justice (“DOJ”) announced the renewal of the DOJ-HHS False Claims Act Working Group, a partnership with the U.S. Department of Health and Human Services (“HHS”) that aims to strengthen use of the…
DOJ Continues to Leverage Polansky in Seeking (c)(2)(A) Dismissals
As discussed here, there is new leadership at DOJ and last week we got insight into when DOJ is moved to exercise its dismissal authority under 31 U.S.C. § 3730(c)(2)(A). In March, DOJ moved to dismiss the relator’s FCA case…