Craft & Sheppard's Supreme Court Review
False Claims Act (FCA)
In Allison Engine Co. v. U.S. ex rel. Sanders, the Court limited the FCA, 31 U.S.C. § 3729(a). The FCA gives individuals the right to sue on behalf of the U.S. false claims made to it. A plaintiff making a FCA claim must establish a relationship between making the false claim presented to a third party and payment to or approval of the false claim by the U.S. The FCA requires the U.S. actually to pay or approve the claim even if first presented to a third party. Liability turns on a defendant’s purpose or intent: Did defendant intend the false statement to be material to the federal government’s decision to pay or approve the claim? The ruling distinguishes between submitting a false statement to a prime contractor with the intent that it will be used to get the U.S. to pay the subcontractor's claim, and with no intent to act as a condition of payment by the U.S.
