Feds Seeking Fact Admissions in False Claims Cases

In False Claims Act settlements, the DOJ has long agreed to provisions that allow the company to resolve the matter while denying the allegations. But in the Southern District of New York, U. S. Attorney Preet Bharara’s administration has been requiring settlements to include admissions of fact, which it then makes public. The practice could spread, writes Arnold & Porter attorney Marilyn May, with “potential collateral consequences” that should give companies pause when they weigh the pros and cons of settlement.