Seventh Circuit Issues Ruling Interpreting False Claim Act Whistleblower Amendments

The Seventh Circuit recently issued a decision interpreting the anti-retaliation provisions of the False Claims Act (FCA). The decision provides important clarifications about how courts may interpret recent amendments to this provision. Like a recent decision by the Fourth Circuit, the Seventh Circuit finds that courts may inquire whether the employee's underlying complaint of FCA fraud was objectively and subjectively reasonable. Using that standard, the Seventh Circuit affirmed a district court's dismissal of the whistleblower's claim on a motion for summary judgment.

The FCA's two key liability provisions apply to any person (1) who "knowingly presents . . . to an officer or employee of the United States Government . . . a false or fraudulent claim for payment or approval" or (2) who "knowingly makes, uses, or causes to be made or used, a false record or statement to get a false or fraudulent claim paid or approved by the Government." 31 U.S.C. § 3729(a)(1)-(2).