‘Failsafe’ Damages Ruling for Precision Lens Derided as Sidestep

A $270 million reduction in the damages award against Precision Lens was a win for False Claims Act defendants, but whistleblowers’ counsel debate how big and see it as an example of sidestepping congressional intent to punish fraudsters.

The $487 million judgment against Precision Lens and others must be reduced to $216.7 million to avoid the “massive imposition” of penalties barred by the the Eighth Amendment’s excessive fines clause, the US District Court for the District of Minnesota ruled Feb. 8.

Only $43.7 million was actual damages to the US government. That amount was trebled to about $131 million, and ...