False Claims Act Litigation

Managing Mounting Risks

False Claims Act litigation, including qui tam (whistleblower) actions, has increased exponentially since the 1986 amendments to the False Claims Act (FCA) and that trend has continued after its 2009 and 2010 amendments. The consequences to companies violating the FCA can be significant: treble damages, as well as recently increased civil penalties for each violation. In addition, FCA matters are often part of parallel criminal investigations. An FCA violation or criminal conviction can also bar the defendant from conducting future business with the U.S. government. Finally, regulations requiring federal contractors to disclose FCA violations and create compliance and internal control regimes have triggered even more activity in this area.

Experienced Litigators, Aggressive Advocates, Effective Negotiators

Miller & Chevalier has long been a leader in defending FCA and qui tam cases, with particular experience in both the defense and healthcare arenas. We have litigated numerous significant FCA cases, including many actions initiated by qui tam plaintiffs. We have successfully resolved many large FCA matters and disposed of many others through creative motions raising the full range of available defenses. Several of these cases are landmarks in the field. We are just as proud of having resolved many matters before they are ever filed or unsealed. This has involved undertaking internal investigations, convincing the government not to institute an action or intervene in a pending qui tam action, and occasionally making voluntary disclosures. In addition to deep litigation experience, our team includes lawyers who formerly served in government who regularly call upon this valuable experience to assist our clients.

We have successfully defended clients in FCA actions involving a wide range of allegations, including failure to comply with quality assurance requirements, cost mischarging, fraudulent inducement, defective pricing, obstruction of federal audits, product substitution, worthless services, provider overpayments, false certifications, improper gratuities, bribery, kickbacks, small-, minority-, and women-owned business issues, and conflicts of interest. The industries we have served in this area include healthcare, defense, finance, information technology, education, construction, and transportation. In addition, we have filed amicus briefs in many precedent-setting cases in federal district courts and courts of appeals, as well as in the U.S. Supreme Court. We have handled numerous matters that included parallel criminal investigations.

We have experience with Inspector General (IG) inquiries, government audits, grand jury proceedings, suspension and debarment proceedings, global settlements, trials, and appellate proceedings. Indeed, the firm's depth and capacity in defending criminal and civil fraud cases from inception through trial not only enables us to spot and develop innovative litigation strategies, but to isolate, identify, and investigate the relevant issues in an FCA action quickly and efficiently – always with an eye to bringing these often complex and potentially costly matters to an early and favorable resolution.

Our lawyers have designed, coordinated, and conducted internal investigations for a wide range of clients in connection with government actions, as well as assisted clients in establishing procedures to ensure compliance with applicable laws and government regulations. We recognize that companies doing business with government agencies have interests beyond current problems and work closely with in-house counsel and internal auditors to improve compliance and establish procedures to mitigate risk and avoid problems in the future.

Miller & Chevalier lawyers speak and write frequently about the FCA.  Among other things, one of our lawyers is the co-author of the "Remedies" chapter in the American Bar Association (ABA) Section of Public Contract Law's book The False Claims Act and Government Contracts.