Jason M. Crawford

On June 30, 2016, the Department Of Justice, published an interim final rule nearly doubling the penalty range for violations under the civil False Claims Act (FCA).  The current range is $5,550-$11,000 for each false claim, but under the new rule the penalty for each false claim would be no less than $10,781 and not more than $21,563. Whistleblowers (referred to as relators under the statute) can collect up to 30 percent of any amount recovered under the FCA (including penalties). Accordingly, the increase in the penalty range will likely incentive the government and relators to bring more actions.  In a “Feature Comment” published in The Government Contractor, C&M attorneys analyze the new rule, the implications of dramatically increased penalty amounts on FCA litigation, and the likely effect on federal government contractors.