The False Claims Act (FCA) continues to be a primary tool for both the Justice Department and whistleblowers’ counsel to bring suits against companies in the financial services sector, and the nationwide pandemic did not halt the investigation and litigation of these cases. Whistleblowers filed 672 new cases in 2020, comprising a significant percentage of
Continued Payments by the VA Won’t Stop Qui Tam When It Comes to Purported Fraud on Veterans
In the latest instance of courts interpreting the Supreme Court’s landmark False Claims Act ruling in Universal Health Services, Inc. v. Escobar, the Eleventh Circuit recently departed from the trend of giving great weight in the analysis of whether a violation was material to the fact that the government continued payment, finding that other
Lender Liability and False Claims Act Issues Under the Paycheck Protection Program
Among the most significant aspects of the CARES Act is the $660 billion small business forgivable loan program known as the Paycheck Protection Program (PPP), and it was perhaps inevitable that the administration of the program would be followed by a wave of related litigation. Already, the PPP application process has generated lawsuits over the
False Claims Act Suits Remain a Focus of Whistleblowers in 2019
Both the Justice Department and an array of whistleblowers’ counsel continue to use the False Claims Act (FCA) to bring suits against banks and mortgage companies, even though recoveries in the financial services sector were scant in 2019. To keep you informed on the status of the law, Bradley’s Government Enforcement and Investigations Practice Group
HUD and DOJ Release Memorandum on the Application and Enforcement of FHA Violations Involving the False Claims Act
In an effort to provide clarity and certainty to Federal Housing Administration (FHA) approved lenders, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Justice (DOJ) jointly issued a memorandum of understanding (MOU) on October 28, 2019, describing broad guidelines about how HUD and DOJ will coordinate using the False
Disclosure and Cooperation Allow for Reduced False Claims Act Settlements According to New DOJ Guidance
This week, the Department of Justice (DOJ) formalized and expanded its guidance for how defendants can earn cooperation credit in False Claims Act (FCA) cases and thereby reduce settlement amounts. New section 4-4.112 of the Justice Manual outlines three ways entities and individuals facing FCA claims can potentially earn credit—through voluntary disclosures, cooperation, and remedial
Justice Department Banks on False Claims Act Enforcement Again in 2018
Though recoveries from the financial services sector fell drastically in 2018, the Justice Department and a veritable army of whistleblowers’ counsel continue to use the False Claims Act (FCA) to bring suits against banks and mortgage companies. To keep you informed on the status of the law, Bradley’s Government Enforcement and Investigations Practice Group is
In Case You Missed It: Justice Department Banks on False Claims Act Enforcement Again in 2017
The Justice Department and a veritable army of whistleblowers’ counsel continue to use the False Claims Act (FCA) to bring suits against banks and mortgage companies. In 2017 alone, the Department of Justice obtained $543 million in FCA settlements and judgments from the financial services industry.
To keep you informed on the status of the
Would the 7th Circuit Have Changed Its FCA Standard but for Peer Pressure?
The Seventh Circuit finally abandoned its “but-for” causation standard for False Claims Act (FCA) damages. The decision comes 25 years after the Seventh Circuit first adopted its controversial standard requiring only a showing that an injury would not have occurred if not for the conduct. The Seventh Circuit has long been the lone outlier among
Jury Verdict Expands to $298 Million in False Claims Act/FIRREA Case as Court Assesses Treble Damages and Penalties
A federal court in Texas recently entered a massive judgment against a mortgage originator for financial crisis conduct, transforming an already severe $93 million jury verdict into a $298 million punishment, and issuing one of the first judicial opinions regarding how to assess penalties under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989