CCCP False Claims Act & Whistleblower Laws 2 — Questions and Answers
Question 1: 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?
- The second suit is dismissed (Correct answer)
- Both suits are consolidated
- The second relator receives a reduced share
- The government must choose which suit to pursue
Correct 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.
Question 2: Which FCA provision allows the government to reduce a relator's share if the relator 'planned and initiated' the violation?
- 31 U.S.C. § 3730(d)(3) (Correct answer)
- 31 U.S.C. § 3730(b)(1)
- 31 U.S.C. § 3729(a)(1)(A)
- 31 U.S.C. § 3731(b)
Correct 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.
Question 3: 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?
- Voluntary disclosure typically eliminates FCA liability if promptly corrected (Correct answer)
- Liability attaches automatically regardless of disclosure
- The hospital must pay treble damages but no civil penalties
- The error converts to a criminal FCA violation
Correct 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.
Question 4: The Dodd-Frank Act amended the False Claims Act to protect whistleblowers who report FCA violations to which entity?
- The SEC
- The DOJ or relevant government agency (Correct answer)
- Congress
- The FTC
Correct 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.
Question 5: What is the significance of the 'public disclosure bar' in the FCA following the 2010 amendments?
- It requires courts to dismiss suits unless the government opposes dismissal
- It converts from a jurisdictional bar to a defense the government can waive (Correct answer)
- It permanently bars all relators from suits involving media reports
- It only applies to suits filed after 2010
Correct 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.
Question 6: Under the FCA, what standard of proof must the government meet to establish that a defendant 'knowingly' submitted a false claim?
- Preponderance of the evidence under the civil scienter standard (Correct answer)
- Beyond a reasonable doubt
- Clear and convincing evidence
- Strict liability regardless of intent
Correct 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.
Question 7: 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?
- Yes, internal reporting is protected if the employee reasonably believed a violation occurred (Correct answer)
- No, only reports to the government trigger FCA anti-retaliation protection
- Yes, but only if the report is made in writing
- No, defense contractors are exempt from FCA retaliation claims
Correct 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.
CCCP False Claims Act & Whistleblower Laws 2
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?