On March 27, 2023, WLF filed an amicus brief urging the Supreme Court to affirm the Seventh Circuit in an important False Claims Act case. Like every court of appeals to consider the issue, the Seventh Circuit held that the test for willfulness announced by the Supreme Court in Safeco applies in FCA actions. As WLF’s brief shows, the Seventh Circuit correctly held that the Safeco test applies in FCA cases when determining if a defendant acted with reckless disregard for the truth or falsity of submitted claims. Violations of the FCA carry both punitive civil penalties and criminal liability. This means that defendants are entitled to heightened due-process protections. WLF contends 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.
Ed. Note: The Supreme Court granted petitions for certiorari in two cases and combined them for briefing and oral argument. WLF participated as amicus in both cases in the U.S. Court of Appeals for the Seventh Circuit. A link to our litigation page for U.S. ex rel. Schutte v. SuperValu is here, and the link for the U.S. ex rel. Proctor v. Safeway page is here.
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