False Claims Act

False Claims Act/Qui Tam Litigation & Civil Investigations

False Claims Act (“FCA”) and qui tam “whistleblower” lawsuits have increased dramatically over the past several years, posing serious challenges to government contractors and companies across a broad spectrum of regulated industries. When faced with these potentially crippling lawsuits, it is important to rely on experienced counsel who can help navigate the entire life cycle of these cases, from preliminary fact-gathering through trial or appeal. Our team has successfully defended clients during the investigative stage, often resulting in no claims being filed or favorable settlements that significantly reduce our clients’ exposure. In the event that a lawsuit is filed, defending these claims requires skillful and experienced counsel, since these lawsuits are fraught with pitfalls, and even a seemingly minor regulatory or billing oversight can present substantial liability exposure under state and/or federal FCA treble-damages and civil penalties provisions. For any government contractor or regulated entity, the potential for a government debarment can shut down a business entirely.

McCarter & English has a deep bench of multidisciplinary FCA lawyers with decades of government experience and expertise in government contracts, healthcare, antitrust, banking and financial services, employment, global trade, tax, and white collar defense and appellate practices who work closely with clients and outside experts to develop successful litigation strategies and defend “bet the company” civil and criminal cases. Our holistic approach focuses on developing comprehensive compliance programs to mitigate risk and reduce liability, advising boards and management with regard to internal investigations and government civil investigative demands, and aggressively representing our clients in the event that a case proceeds to litigation. Our team includes New Jersey’s former chief federal judge, former federal and state prosecutors, and experienced litigators who have handled FCA and qui tam cases in federal and state courts throughout the country. Our team of lawyers will vigorously defend your rights whether at trial, in the form of a procedural dismissal, or in a sensible early settlement. We keep our clients’ strategic goals in mind as we work to find efficient, preemptive resolutions that serve our clients’ business objectives.

Representative Matters

Secured an appellate victory on behalf of Overstock.com in the Delaware Supreme Court in a unique case involving Delaware escheat law and a qui tam action. The Court, sitting en banc, unanimously reversed a multi-million dollar false claim judgment entered against Overstock.com.

Successfully defended a favorable ruling on appeal before the Third Circuit on behalf of a global supplier of power coverage and storage technology. The underlying dispute derived from a qui tam suit filed under the False Claims Act claiming defective manufacturing of the backup power supply units to the United States ICBM Missile System. Initially, we conducted an internal investigation and, after a number of proffers to the government, successfully convinced the Department of Justice to close its criminal investigation of our client. The related civil qui tam action settled on the eve of trial for a small fraction of the $33 million demanded by the Relator. Under the False Claims Act, the settlement technically entitled the Relator to an award of “reasonable” attorneys’ fees. McCarter, however, challenged the amount claimed as excessive, and secured an order that nearly cut the requested fees in half.