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ARTICLE · 11 OCTOBER 2017

Escobar's Effect On False Claims Act Qui Tam Actions

Day Pitney LLP
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Dan Wenner and Danielle Corcione authored an article, "Escobar's Effect On False Claims Act Qui Tam Actions; Region By Region," for Business Crimes Bulletin, an ALM publication ...

United StatesCriminal Law
Daniel Wenner
Daniel Wenner
Danielle Corcione
Danielle Corcione
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Dan Wenner and Danielle Corcione authored an article, "Escobar's Effect On False Claims Act Qui Tam Actions; Region By Region," for Business Crimes Bulletin, an ALM publication covering financial and white-collar crime. The article discusses Universal Health Servs., Inc. v. United States ex rel. Escobar, which altered the landscape for False Claims Act (FCA) litigation.

As Dan and Danielle explain in the article, the FCA is designed to prevent private companies contracting with the government from knowingly submitting false or fraudulent claims for their services. The FCA allows actions to be filed against the alleged wrongdoers in federal district court, and provides an incentive for whistleblowers to come forward and make such claims. These qui tam plaintiffs must be the "original source" of the information about the false claims and are rewarded with a percentage of the ultimate payout.

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