On September 23, 2022, the en banc Fourth Circuit affirmed the District Court’s decision in this False Claims Act case. The District Court had held that the test for willfulness announced by the Supreme Court in Safeco applies in FCA actions. The decision was a victory for WLF, which filed an amicus brief urging the Fourth Circuit to affirm the District Court’s ruling. WLF explained that applying Safeco in FCA cases provides the necessary due-process protections while advancing Congress’s goal of ensuring companies do not bury their heads in the sand.  Moving forward, companies can rest assured that they won’t face treble damages under the FCA for mere negligent conduct.

Documents:

Fourth Circuit’s opinion

WLF amicus brief