Grassley’s Statement Carries Big Weight, Whistle-Blower Says

A whistle-blower hoping to keep alive a false claims case against Moody’s Corp. asked a court to closely consider Sen. Charles Grassley’s (R-Iowa) recent Senate floor statement about the False Claims Act, and what he views as an improper pro-defendant trend in federal courts.

Grassley was critical Feb. 13 of how some courts have found that a defendant can’t be liable under the False Claims Act if the government knew about the defendant’s alleged misconduct and continue to pay it anyway.

Paying claims to a fraudulent contractor doesn’t necessarily mean fraud is clearly unimportant to the government; paying may mean ...