SCOTUS Limits Federal Fraud Cases

The U.S. Supreme Court established some limits for fraud cases brought against government contractors this week, but the ruling was not the business victory for which some hoped. Instead, in its 8-0 ruling the Court said such lawsuits can be filed as long as they are relevant to the government’s decision to make the payment to the company. The Court threw out a 2015 appeals court ruling that allowed the parents of a woman who died at a Universal Health Services facility to sue under the False Claims Act, but sent the case back to a lower court where it may still proceed. The Court rejected the lower court’s expansive view of a company’s liability under the False Claims Act.