Corporate Compliance

False Claims Act Corrections Act moves out of committee

Compliance Monitor, April 9, 2008

The Senate could soon be taking up the question of whether the courts have misinterpreted the intent of the False Claims Act.

The False Claims Corrections Act of 2007, introduced in September 2007 by Senators Charles Grassley (R-Iowa) and Richard Durbin (D-Ill), passed the Senate Judiciary Committee on April 3 and will be debated by the full Senate, according to a Grassley press release.

If passed, the new law would:

  • Remove the requirement that false claims be presented to a government employee
  • Clarify when claims filed based upon publicly disclosed information can be dismissed
  • Clarify that false or fraudulent claims against non-U.S. government funds under the trust and control of the U.S. government are subject to recovery under the FCA
  • Clarify when a government employee may act as a qui tam relator under the FCA
  • Amend the statute of limitations in FCA cases

Grassley was also instrumental in updating the False Claims Act in 1986.

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