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Assessment of The False Claims Act

The False Claims Act is a federal law enacted to give individuals who are not associated with the government, the right to file an action against a federal contractor who is claiming fraud in opposition to the government. An individual who files the claim under The False Act may be entitled to a percentage of any recovered damages. This act provides legal support to cancel out all fraudulent billings that are turned in to the Federal government. Recently, an opinion was released through the 5th Circuit in USA v. Lithium Power Tech, which enabled the implementation of the 4th Circuit’s test for a claim through the False Claim Act. When a Court is evaluating a claim under the False Claims Act they must look at evidence that points to whether there was involvement of counterfeit statements or fake conduct, if the evidence was prepared or conceded out with the necessary scienter, and if it caused the government to compensate/forfeit money.

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