Report Analyzes False Claims Act Enforcement Developments
A Hogan Lovells white paper, “The False Claims Act Guide: 2020 and the Road Ahead,” says that a federal directive to prioritize the investigation of coronavirus-related fraud, the unprecedented amount of federal stimulus payments, and the transition to a new administration are creating a climate in which False Claims Act (FCA) enforcement likely will create significant risks for businesses in 2021. The report looks at FCA enforcement trends in industries including healthcare, financial services, and higher education, as well as key developments in the law that are expected to drive FCA enforcement this year, according to a firm statement.
The report’s executive summary says the Justice Department continued a sustained program of FCA enforcement in 2020 leading to significant judicial decisions on issues of increasing importance in FCA jurisprudence and the recovery of substantial damages and penalties in settlements under the act.
“In particular,” it says, “the healthcare sector continued to see nine-figure FCA settlements stemming from anti-kickback statute violations and billing for medically unnecessary services, but the year also saw substantial FCA settlements as part of the government’s priority in combatting the opioid epidemic.”