Bloomberg Law
Feb. 20, 2018, 3:46 PM

High Court Can Fix False Claims Materiality, Petition Says

Daniel Seiden
Daniel Seiden

The Supreme Court needs to review the Fifth Circuit’s decision to vacate a $663 million false claims jury verdict because it can’t be reconciled with other appeals courts’ decisions, and it erred in applying the “continuing to pay” standard for materiality, whistle-blower Joshua Harman said in his petition.

The Fifth Circuit’s view of materiality offers unfettered power to federal agencies to ignore frauds at the expense of taxpayers by the simple act of continuing to pay claims, he said.

Under the Fifth Circuit standard, he said, agencies that missed fraud can ensure that their errors or malfeasance is never punished ...