False Claims Act & Whistleblower Laws Flashcards

Under the FCA's 'first-to-file' rule, what happens when a second relator files a qui tam suit based on the same underlying facts as a pending action?

Answer: The second suit is dismissed

The first-to-file rule bars any subsequent qui tam action based on the same facts as a pending suit, requiring dismissal of the later-filed case.

Which FCA provision allows the government to reduce a relator's share if the relator 'planned and initiated' the violation?

Answer: 31 U.S.C. § 3730(d)(3)

Section 3730(d)(3) permits a court to reduce the relator's share if that person planned and initiated the fraudulent scheme.

A hospital submits cost reports to Medicare that contain inflated figures due to an accounting error discovered internally and self-disclosed before any investigation. How does the FCA treat this?

Answer: Voluntary disclosure typically eliminates FCA liability if promptly corrected

Voluntary self-disclosure before a government investigation, especially under the CMS Self-Referral Disclosure Protocol, can significantly reduce or eliminate FCA exposure.

The Dodd-Frank Act amended the False Claims Act to protect whistleblowers who report FCA violations to which entity?

Answer: The DOJ or relevant government agency

Dodd-Frank extended anti-retaliation protections to employees who report FCA violations to the DOJ or the relevant federal agency overseeing the contract.

What is the significance of the 'public disclosure bar' in the FCA following the 2010 amendments?

Answer: It converts from a jurisdictional bar to a defense the government can waive

The 2010 ACA amendments changed the public disclosure bar from a jurisdictional defect to an affirmative defense that the government can waive to allow a suit to proceed.

Under the FCA, what standard of proof must the government meet to establish that a defendant 'knowingly' submitted a false claim?

Answer: Preponderance of the evidence under the civil scienter standard

The FCA is a civil statute requiring proof by a preponderance of the evidence that the defendant acted with actual knowledge, deliberate ignorance, or reckless disregard.

A defense contractor employee reports procurement fraud internally but does not report to the government. Is the employee protected under the FCA's anti-retaliation provision?

Answer: Yes, internal reporting is protected if the employee reasonably believed a violation occurred

The FCA's anti-retaliation provision protects employees who engage in protected activity, which includes internal reporting if it is in furtherance of an FCA action or investigation.