Fraud Alert: What Every Texas Lawyer Should Know About the False Claims Act


Against a backdrop of declining civil litigation, the dramatic increase in lawsuits under the False Claims Act presents challenges for clients and their counsel. Recent legislative changes and new theories of liability have expanded the statute far beyond the traditional area of government contracting. And, increasingly, competitors and former employees see the FCA as a vehicle to bring a lawsuit on behalf of the United States (called a qui tam suit) to settle a score and share in the government’s recovery of treble damages, statutory penalties, and attorneys’ fees. The potential for government intervention further complicates these suits.

Trusted counsel should be educated about the special characteristics of FCA litigation before advising clients on how to proceed. Here are five common questions about the FCA, the reasons for its expanding scope, and the future of FCA litigation.

To read the full article, click on the PDF linked below.


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