Overview
The False Claims Act is the federal government's primary weapon against fraud involving federal funds: Medicare, Medicaid, defense contracts, federal grants, and virtually any program involving federal money. It authorizes damages of three times the false claims amount plus per-claim penalties, and its qui tam provisions allow whistleblowers to file suit on the government's behalf and collect a share of any recovery.
Daniel Fridman's representation of a U.S. state agency in a DOJ False Claims Act investigation reflects the full range of our FCA practice. The DOJ Civil Division alleged the agency had introduced bias into a federal benefits program's quality-control process, resulting in false quality-control data and unentitled performance bonuses. The government's demand exceeded $40 million, reflecting the treble damages and per-claim civil penalties available under the FCA; the matter resolved for $17.5 million, a fraction of the government's original demand (DOJ Press Release No. 21-647, July 12, 2021). We represent companies and individuals at every stage: responding to Civil Investigative Demands, negotiating with the DOJ Civil Division, defending in qui tam litigation after government intervention, and litigating in cases where the government declines but the relator pursues independently.
Our Approach
The most important window in any FCA investigation is before the government decides whether to intervene in a qui tam suit. During the investigation period, which can last years while the complaint is under seal, companies can present their business practices, demonstrate compliance, and argue for non-intervention or favorable resolution. We engage DOJ Civil Division attorneys during that window and build the record that makes a declination or favorable settlement achievable.
