Tag: False Claims Act

Supreme Court Advised That FCA Knowledge Standard Is Subjective May 1, 2023 Whistleblowers have urged the Supreme Court to consider subjective factors when determining whether someone knowingly acted under the False Claims Act (FCA). According to the whistleblowers, such factors fall under the FCA; they claim its meaning does not support a truly objective test when determining whether someone intentionally acted under the law. Some supermarket chains have argued against this stance after the whistleblowers' accusations. According to the allegations, these retailers overcharged Medicaid and Medicare for generic drugs. For example, the whistleblowers accused the retailers of not giving Medicare and Medicaid beneficiaries the same discounts on generic drugs as offered to retail customers at the usual prices. In two similar cases, the Seventh Circuit ruled that the retailers had reasonably interpreted the ambiguous policy. As such, the courts did not warn against their interpretation. Instead, the Seventh Circuit adopted the "Safeco standard" from a 2007 Supreme Court decision for these cases. The whistleblowers believe the Safeco standard came from an unrelated discussion. From their understanding, this standard concerned willful violations of the Fair Credit Reporting Act (FCRA). As such, they believed it addressed a specific context. Furthermore, they mentioned that the FCA had text clearly defining what it meant to act knowingly. According to the Congressional Research Service, the Court will consider several factors for this case. For example, it will determine "whether a defendant 'knowingly' violates the FCA if it is aware of a substantial risk that its payment submissions might violate a legal requirement. However, the submissions are also consistent with an objectively reasonable (but wrong) interpretation of that requirement." This decision has significant implications for the FCA and other federal laws; civil penalties may depend on whether a person acted knowingly. Business owners should closely monitor the outcome of this case, as it has important implications for the FCA. For example, the FCA imposes civil penalties and triple damages on individuals who knowingly present or cause the presentation of false or fraudulent claims for payment or approval. As such, business owners must clearly understand what the Act considers "knowingly" to avoid facing substantial financial penalties. In addition to ensuring compliance with the FCA, business owners must also be mindful of their obligations under the FCRA. As such, businesses must take several steps to maintain compliance and avoid legal issues, especially in background checks. The best way to ensure compliance is by partnering with a trustworthy background check company. Ready to discover more about Pre-employ’s background checks? Speak to a Sales Rep today. Source

Tag: False Claims Act

Supreme Court Advised That FCA Knowledge Standard Is Subjective

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