ShareThisNAMIC Launches Campaign to Defeat Costly Legislation
NAMIC is aggressively battling the latest attack on business from the trial bar, which is behind the proposed legislation to amend the Federal False Claims Act. NAMIC issued an Action Alert yesterday, urging members to help defeat this unnecessary and costly legislation. The association is also lobbying members of Congress about this misguided legislation.
This Act provides an incentive to federal whistleblowers to bring cases alleging false claims in federal contracts by granting whistleblowers part of any award or settlement amount, plus attorneys’ fees. NAMIC supports the laudable purposes of the Act but strongly opposes the amendments that it believes would imbalance the existing law in favor of unwarranted suits and attorneys’ fees.
The bill, S. 2041, the False Claims Act Correction Act of 2007, proposed by Sen. Charles Grassley, R-Iowa, would extend the FCA’s reach beyond federal programs and remove important legal defenses to federal FCA claims, thereby significantly raising companies’ cost of doing business with the federal government and those that insure that business. It would likely lead to unjustified and unnecessary litigation, which would only serve to fatten the trial bar’s coffers.
The Senate Judiciary Committee is scheduled to consider the legislation on Thursday.
Specifically, the legislation would make any person who knowingly presents a false or fraudulent claim for government money or property for payment or approval liable for a civil penalty. Key provisions of the legislation would:
- Remove the requirement that false claims be “presented” to a federal government employee and provide for liability when a false claim is made regarding government money or property;
- Provide that the public disclosure bar, which allows for the dismissal of FCA cases that are based on publicly disclosed information unless the qui tam relator is an “original source” of that information, may be asserted by only the Justice Department, rather than by the FCA defendant;
- Establish liability for false of fraudulent claims made against non-U.S. government funds that are under the trust and control of the U.S. government;
- Clarify that federal government employees may bring FCA actions based on information obtained during the course of their employment when they have reported the information to the inspector general and/or attorney general and 12 months have passed without the filing of an action; and
- Establish a 10-year statute of limitations for all FCA cases.
Direct questions to NAMIC’s Senior Federal Affairs Director Marliss McManus.
Posted: Tuesday, April 01, 2008 12:00:00 AM. Modified: Wednesday, April 02, 2008 10:37:57 AM.
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