Lexology July 13, 2023
It is often said that no news is good news. In that sense, relators can take comfort in the recent opinions issued by the Supreme Court relating to False Claims Act (“FCA”) matters (United States ex rel. Schutte v. SuperValu Inc. (“Schutte”) and United States ex rel. Polansky v. Executive Health Resources, Inc. (“Polansky”)). Though the effects of these opinions obviously remain to be seen, it is unlikely they will materially alter the challenges relators face, while foreclosing a potentially devastating defense to FCA claims.
The good news: The Schutte opinion rejects a defendant’s ability to abstract away knowing conduct.
In Schutte, the Court assessed whether a defendant can be determined to have acted knowingly (i.e., with scienter) if any...
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