A Multidisciplinary Approach to Resolving False Claims Act (FCA) Litigation

A look at the critical importance of a multi-faceted approach to responding to FCA investigation and litigation considering legal, accounting and public relations aspects.

June 28, 2012

Moderated by Latham & Watkins’ partner Roger Goldman, this on-demand webcast features Deloitte Financial Advisory Services LLP’s Southeast Deputy Regional Managing Partner Yvonne Craver, Ketchum’s Senior Vice President John Bradbury, Jr. and Latham partner David Hazelton.

Listen to the “A Multidisciplinary Approach to Resolving False Claims Act Litigation” webcast. The on-demand webcast is available online through September 12, 2012.

How has the Obama Administration approached enforcement of the False Claims Act?

Goldman: The US Department of Justice (DOJ) has recovered US$8.7 billion since January 2009 — the largest FCA recovery total in DOJ’s history. If you talk to both the defense bar and the relator bar and the people at the DOJ in charge of administering the FCA regime, they all predict an increase in cases and recoveries in 2012. The total backlog at the DOJ is up.

While the healthcare area continues to represent perhaps the single largest portion of FCA settlements and judgments, 40 percent of new cases were non-healthcare — and many of the new healthcare cases tend to be smaller in scope.

What trends are you seeing in terms of the government’s approach to False Claims Act investigations?

Goldman: US Attorney General Eric Holder recently issued a memorandum urging parallel civil criminal regulatory and administrative proceedings. He is encouraging the government to act in its own multidisciplinary fashion by using administrative proceedings rather than Grand Jury proceedings, because under a Grand Jury the information cannot be shared. So the notion that a multidisciplinary strategy is going to be necessary to deal with future litigation is certainly enhanced by where the government is going now.

What trends do you see in procurement False Claims Act cases?

Hazelton: Over the last several years, we’ve seen a significant uptick in the number and size of FCA procurement cases. And the defendants in procurement FCA cases are not just the traditional defense- and aerospace-type companies — they include IT manufacturers, resellers and integrators; healthcare providers; food distributors and office supply companies. Companies organized for commercial operations often are not structured to comply with government contract rules and requirements.

 
 
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