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
Another Year of Record False Claims Act Enforcement in the Financial Services Industry
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
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