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Article: Qui tam and the False Claims Act: criminal punishment in civil disguise: the qui tam provisions of the FCA are a serious threat to American industry, and they are subject to constitutional challenges on several grounds.
- Article from:
- Defense Counsel Journal
- Article date:
- October 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 International Association of Defense Counsels. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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SINCE the 1986 revisions to the federal False Claims Act (FCA), 31 U.S.C. [subsections] 3729-3733, the U.S. Department of Justice reports that more than $10 billion ha been awarded in civil verdicts under the act, and the pace is quickening. Just recently, the August 18 National Law Journal reported that Bayer Pharmaceuticals faced the largest ever Medicare fraud settlement when it agreed to pay $257 million stemming from an FCA suit over failure to report properly the pricing of two drugs, thereby depriving Medicare of rebates. No segment of the business world immune. The FCA is fast becoming a Congressional affront to both the U.S. Constitution and the independence of ...