Allison Engine Co., Inc. v. United States ex rel Sanders

July 10, 2008 Advisory

On June 9, 2008, the United Supreme Court released a unanimous decision in Allison Engine Co., Inc. v. United States ex rel Sanders, 553 U.S. __ (2008), limiting the scope of the False Claims Act.
The False Claims Act (FCA) was originally enacted in the Civil War era to facilitate prosecution of profiteers defrauding the Union army. The Act created civil liability for knowingly using a "false record or statement to get a false or fraudulent claim paid or approved by the government," and for conspiring "to defraud the government by getting a false or fraudulent claim allowed or paid." 31 USC §3729(a)(2) and 3729(a)(3). In the Allison Engine case the Supreme Court granted certiorari to decide the required relationship between the party making the alleged false statement on the one hand and the Government on the other, in order to sustain a viable FCA claim.
 

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