Jason Workmaster Quoted on Impact of SCOTUS FCA Ruling on Government Contractors in Bloomberg Law
"High Court False Claims Ruling Underscores Communication is Key"
Bloomberg Law quoted Jason Workmaster on the Supreme Court of the United States' (SCOTUS) June 1 unanimous opinion in United States ex rel. Schutte v. SuperValu Inc., which reinstated False Claims Act (FCA) suits alleging the SuperValu and Safeway Inc. grocery chains overcharged Medicare and Medicaid for prescription drugs. This ruling has "increased the advisability of a contractor ensuring that the government is contemporaneously aware of the contractor's interpretation of an arguably ambiguous legal requirement," Workmaster said. If that happens, he noted, a contractor may be able to stop an FCA case through an early motion for summary judgment on the basis that the government knew about the contractor's interpretation and continued to pay the contractor's claims, thus negating scienter and materiality, Workmaster acknowledged.