fbpx
News
February 21, 2017

Plaintiffs’ Bar ‘Salivating’ at Fmr. AG Lynch’s Rule Doubling False Claims Act Penalties

Former U.S. Attorney General Loretta Lynch signed a final rule before leaving office that would “effectively double penalties under the False Claims Act,” reports the Washington Free Beacon’s Joe Schoffstall.

The 2015 Bipartisan Budget Act required the Justice Department to make “annual inflation adjustments for civil penalties” as well as a “one-time aggregate penalty adjustment.” Typically, the government would “go back to the last instance amendments were made” to the False Claims Act, which was 2009. However, Lynch’s rule went all the way back to 1986, which was “the second-to-last time changes were made” to the Act.

“Trial lawyers who specialize in False Claims cases are undoubtedly salivating at the prospect of these vastly increased penalties,” said Peter Hutt II, partner at Covington and Burling.  “A defendant that faced $1 million in penalties under the former regime would now face more than $2 million in penalties.  This will give another lever to qui tam plaintiffs and their lawyers to extract more money from defendants in settlement.”

Supreme Court Qui Tam Action Blog Supreme Court to Review Qui Tam Action Dismissal Standards  False Claims Act (FCA) Blog Law 360 Expert Analysis: "False Claims Act Proposal Is Unfair And Would Hinder Economic Growth" False Claims Act (FCA) U.S. Department of Justice building in Washington D.C. News Reuters "Has An Investor-Backed FCA Whistleblower Reached The End of the Road?" False Claims Act (FCA) U.S. Department of Justice building in Washington D.C. Blog Flying Blind: Secret Funding in Government Lawsuits and What to Do About It False Claims Act (FCA), Third Party Litigation Funding (TPLF) News On Appeal, Justice Dept. Prevails In Bid To Dismiss Pharma Fraud Case False Claims Act (FCA)

Cookie Notice

By clicking “I Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

Cookie Notice

By clicking “I Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Review Settings