False Claims Act -- 2017



United States ex rel. Customs Fraud Investigations LLC v. Victaulic Co.   (U.S. Supreme Court)

False Claims Act pleading standard

The NAM filed an amicus brief in the U.S. Supreme Court urging the Court to consider a case from the U.S. Court of Appeals for the Third Circuit involving False Claims Act (FCA) qui tam pleading standards. The issue arises from a circuit split where eleven court of appeals have adopted conflicting tests to evaluate the sufficiency of a relator’s complaint. The pleading standard applies to manufacturers who contract, either directly or indirectly, with the federal government, thus subjecting them to increased litigation. The NAM’s brief explained that the Third Circuit’s qui tam pleading standards for alleging an FCA claim is the most lenient of those adopted by any circuit and would therefore require the pleading party to show nothing more than an opportunity for fraud by a business. Unfortunately, the Supreme Court denied the petition for certiorari, declining to resolve the circuit split.


Related Documents:
NAM amicus brief  (June 22, 2017)