The federal government continues to use the False Claims Act (FCA) as one of its prime enforcement tools against banks and mortgage companies. In 2016 alone, the Department of Justice obtained $1.6 billion in FCA settlements and judgments from the financial services industry. As it does each year, Bradley has assembled an overview of the
Supreme Court Narrows Application of Implied Certification under the False Claims Act and Establishes a Demanding Materiality Standard
The Supreme Court’s decision in Universal Health Services v. United States ex rel. Escobar reframes when falsity may be implied under the False Claims Act (FCA) and raises the bar for materiality under the statute. Though the Court upholds the controversial theory of implied false certification, Escobar limits it to situations where both (1) a
In a Major FIRREA Victory for the Banks, the Second Circuit Overturns $1.27 Billion Jury Verdict
On Monday, the Second Circuit overturned a jury verdict and $1.27 billion penalty against Bank of America imposed under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), 12 U.S.C. § 1833a. Because the Government failed to demonstrate that Countrywide Home Loans, Inc. (Countrywide) intended at the time of contracting to defraud Fannie
Second Circuit Rejects Broad Certification as Basis for False Claims Act Liability in Financial Industry
Today, the Second Circuit affirmed the dismissal of False Claims Act (FCA) claims against Wells Fargo, finding a general certification of compliance with “any laws or regulations” too broad to support an FCA action and cautioning against an expansive reading of the FCA. Read the opinion in Bishop v. Wells Fargo & Co., Case
Sixth Circuit Affirms Dismissal of $2.3 Billion FCA Case Due to Prior Public Disclosure
Last week, in U.S. ex rel. Advocates for Basic Legal Equality, Inc. (ABLE) v. U.S. Bank, the Sixth Circuit affirmed the dismissal of a False Claims Act (FCA) suit against U.S. Bank because the conduct alleged by the qui tam relator had previously been publicly disclosed in a consent order with the Office of
Ninth Circuit Rejects Whistleblower Argument that Fannie Mae and Freddie Mac are Federal Instrumentalities under the False Claims Act
Liability under the False Claims Act (FCA) is premised on the submission of a claim for money or property either to a federal government “officer, employee, or agent” or, under certain circumstances, to a nongovernmental “contractor, grantee, or other recipient” of government funds. In a decision affirming the dismissal of a whistleblower’s FCA action, the