Corporate Compliance

Grassley, Durbin introduce bill to beef up False Claims Act

Compliance Monitor, September 19, 2007

On September 12, Senator Charles Grassley (R-Iowa) and Senator Richard Durbin (D-Ill) sponsored the False Claims Act Correction Act of 2007. The bill is designed to update the False Claims Act, which was last beefed up in 1986.

If passed, the new law would:

  • remove the requirement that false claims be presented to a government employee
  • clarify the dismissal of parasitic claims filed based upon publicly disclosed information
  • 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
  • amends the statute of limitations in FCA cases

This is the government's latest attempt to beef up the FCA. The Deficit Reduction Act of 2005, which took effect on January 1, 2007, provides incentives for states to enact False Claims Acts (state FCAs) modeled after the federal FCA.

To read more, click here.

Most Popular