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Litigation United States Supreme Court White Collar Crime

FCA and Statute of Limitations: A Puzzle for the Supreme Court

The FCA is not a model of clarity. In a certiorari petition in United States ex rel. Hunt v. Cochise Consultancy, the U.S. Supreme Court will address an area of uncertainty that has led to a three-way circuit split regarding the FCA’s statute of limitations. Depending on the outcome, FCA defendants could end up facing even more claims up to a decade old or, alternatively, have a new limitation on FCA actions upon which to rely.

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The False Claims Act (FCA), 31 U.S.C. §3729 et seq., which is more than 150 years old, was originally intended to protect the federal government from fraud perpetrated by war profiteers. Over the years, its scope has expanded to any recipient of federal dollars, especially health care companies. Since 1986, the federal government’s recoveries have exceeded $59 billion in FCA settlements and judgments. DOJ, Fraud Statistics – Overview, at 1 (http://bit.ly/2GlIAvp). In 2018 alone, the total recovery was over $2.8 billion, most of which was health-care related. DOJ, Fraud Statistics – Overview, at 1, 3.

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