The Insurance And Tax Consequences Of Settling FCA Cases
By Andy Liu and Jason Lynch ( September 24, 2018, 2:21 PM EDT) -- There are two types of government contractors: those that have been accused of violating the False Claims Act and those that will be someday. In fiscal year 2017 alone, there were 799 new FCA cases filed, and the U.S. Department of Justice obtained more than $3.7 billion in settlements and judgments from civil cases involving fraud and false claims against the government.[1] This is no mere blip — over the past six years, we have seen an average of 811 new FCA cases filed and recoveries of over $4.3 billion per year. Most of this money is, not surprisingly, collected through settlement agreements. Last month alone saw an $84.5 million settlement by a hospital system in Michigan,[2] a $65 million settlement by hospitals in California[3] and a $21 million settlement by an ambulance company in Texas.[4]...
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