D.C. Circuit Finds Reliance On Supplier Certifications Can Preclude False Claims Liability

On August 29, the Court of Appeals for the District of Columbia Circuit ("D.C. Circuit") affirmed the dismissal of a qui tam relator's False Claims Act ("FCA") suit against an IT contractor in which the relator alleged that the contractor violated the FCA by supplying computers allegedly manufactured in China. U.S. ex rel. Folliard v. Gov't Acquisitions, Inc., — F.3d —, 2014 WL 4251150 (D.C. Cir. 2014). The relator alleged that the contractor, Govplace, Inc., improperly certified that computers and other IT equipment sold on certain General Services Administration ("GSA") contracts complied with the Trade Agreements Act ("TAA") restrictions, because a subcontractor supplied computer products manufactured in China. The subcontractor certified that these products were TAA-compliant; the defendant in turn relied on these certifications to certify to GSA that the products were compliant. The district court found that no evidence suggested the contractor had "knowingly"