What Are False Claims Act Cases

The core of a false claims case is that the government was cheated in one form or another - the "false claim."

The false claim may take many forms: overcharging for a product, failing to perform a service, delivering less than the promised amount of goods or services, underpaying money owed to the government, providing inferior products, failing to comply with program restrictions, charging for one thing but delivering another, and violating a governmental regulation, just to list a few examples. The legal definitions of a false claim can be found in section § 3729 of the Act.

A company or individual that has made a false claim may be liable for triple damages, a civil fine of $5,500 to $11,000 per false claim, and the attorney's fees of the citizen whistle-blower (called the "relator"). Individuals or companies that cause someone else to submit a false claim can also be found liable under the False Claims Act.

The standard of proof in a False Claims Act case is "preponderance of the evidence", i.e., the claim is more likely true than not. This is the same burden of proof ordinarily applicable in most civil cases, and is easier to meet than the "beyond a reasonable doubt" standard used in criminal cases.