False Claims Act Damages: D.C. Circuit Says Government Cannot Keep Going Back To The Well

False Claims Act (FCA) cases, particularly in the government contracts space, often have several defendants; prime contractors, subcontractors, vendors and individuals are all common targets. In healthcare FCA cases, with increasing regularity, multiple parties (hospitals, providers, investors, etc.) appear in the defendant bracket. According to the U.S. Supreme Court, these defendants face joint and several liability for the treble damages permitted under the statute. But what if one or more defendants settles first?

The D.C. Circuit's recent ruling in United States v. Honeywell International Inc. holds a defendant may offset their damages, dollar for dollar, against the settlement amounts paid by other defendants.