June 12, 2008
On June 9, 2008, the Supreme Court decided Allison Engine Co. v. United States, involving two provisions of the False Claims Act. The Court ruled that in order to show that a subcontractor violated 31 U.S.C. 3729(a)(2), it is not sufficient to show that the subcontractor’s use of a false statement resulted in payment of the claim or that government funds were used to pay the claim. Rather the provision requires that the subcontractor made the false statement for the purpose of having the contractor use the false statement to get the government to pay the contractor. Likewise, the Court ruled that the conspiracy provision, 31 U.S.C. 3729(a)(3), requires proof that conspirators not only engaged in conduct that involved making a false statement but agreed that the statement would have a material effect on the government’s decision to pay the false or fraudulent claim. In this episode of SCOTUScast, attorney Marcia Madsen, a partner at Mayer Brown discusses the case.
Oral Argument - February 26, 2007:
Decision - June 9, 2008: