Attys React To High Court FCA Statute Of Limitations Ruling

Michael Wagner spoke with Law360 about the Supreme Court’s ruling in Cochise Consultancy Inc. v. U.S., a case determining the statute of limitations in False Claim Act cases. Mr. Wagner says, "In theory, the Court's ruling could incentivize qui tam plaintiffs to wait years to bring their claims, in the hopes of allowing their potential recovery to increase. This incentive to delay is at odds with the spirit of the FCA's qui tam provision, which aims to encourage private citizens to bring potential misconduct to the government's attention. Practically, the decision is not a game-changer, for a few reasons. First, this ruling will have a relatively narrow application. Second, plaintiffs that delay bringing claims will find themselves exposed to other defenses, such as the first-to-file bar. And third, the decision does nothing to disturb the Court's watershed ruling in Escobar, which held that government knowledge is a strong defense on materiality grounds."