News
David Chizewer, a Principal of the firm and Chair of the Litigation Group, is quoted in the Bloomberglaw.com article "Whistleblowers Want High Court to Cut Fraudulent Claim ‘Excuses’"
The article, published on April 17, 2023, covers two whistleblowers who are asking the Supreme Court to revive their False Claims Act cases. They contend that the lower court applied an improper interpretation of the FCA's scienter standard when it rejected their claims. The whistleblowers claim that supermarkets SuperValu Inc. and Safway Inc. overcharged the government for prescription drugs. The US Court of Appeals for the Seventh Circuit ruled that the supermarkets didn't knowingly overcharge as they followed an objectively reasonable interpretation of the law. According to the whistleblowers, the supermarkets did know they were improperly billing but are now claiming differently.
Said Mr. Chizewer, "It seems clear that the Seventh Circuit got it wrong. If a government contractor submits a claim for payment and correctly believes that it is not entitled to the full amount sought, then the contractor has knowingly submitted a false claim and is liable under the FCA,” he said. “There is no statutory exception or defense in that situation based on objectively reasonable conduct."