Significant Implications For FCA Defendants: Second Circuit Clarifies "Willfulness" In McKesson Decision

In a pivotal ruling that may reshape the landscape of False Claims Act ("FCA") litigation, the United States Court of Appeals for the Second Circuit adopted a nuanced interpretation of "willfulness" under the federal Anti-Kickback Statute ("AKS").

In United States, et al., ex rel. Hart v. McKesson Corp, the Court found that to act willfully, a defendant must have knowledge that their conduct is unlawful, even if the defendant is unaware of the AKS specifically. This means that a defendant must have a "bad purpose" or intent to do something the law forbids, but does not need to be aware of the exact statutory provision being violated. This interpretation aligns with the broader principle in federal criminal law that punishes deliberate and knowingly wrongful conduct, while protecting those who might unintentionally engage in prohibited actions.