Am I Liable? The Problem of Defining Falsity Under the False Claims Act
The federal False Claims Act creates civil liability for entities that falsely or fraudulently contract with the government to provide services or goods in exchange for federal funding. With the growth of Medicare and Medicaid funding for health care services, there has been a corresponding growth of false claims, as well as FCA cases, in the healthcare context. Amid this increase in FCA cases in healthcare, there has been growing confusion as to how to address cases in which the defendant is not the party actually submitting the allegedly false claim, but the party that caused the false claim to be filed. Courts have split over how to treat liability under the FCA and accordingly apply various standards for determining falsity. This note thus addresses the current disparity of how courts treat falsity for FCA actions in which the actual submitting entity is a third-party not accused of the wrongdoing.
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