Law360 Quotes Shook Partner on US DOJ Memo on False Claims Act

Shook Partner Robert J. McCully offers his perspective on the significance of a new U.S. Department of Justice memo. The memo discusses when the government should consider dismissing False Claims Act cases brought by whistleblowers. Law360 approached McCully to weigh in:

“It is highly significant that the DOJ recognizes that there are meritless and parasitic qui tam actions included in the record numbers of new FCA cases filed, as well as cases that the agencies do not want to see pursued because they run contrary to the agency’s administration of its programs or involve alleged false statements of no materiality. It is even more significant that the DOJ is reclaiming for itself the role of gatekeeper in protecting the FCA's purpose, which has always been the recovery of damages when the government has suffered real fraud, as opposed to the all-too-common current situation, where settlements are reached simply to avoid extraordinary litigation and discovery costs. The stated policy is important — putting the policy into action will be the more significant event.”