The False Claims Act (“FCA”) imposes significant penalties on those that defraud the
Government. The focus of the FCA is on those that present or induce others to present false or
fraudulent claims to the Government for payment. There has been a split between the circuit
courts in regards to how far that liability extends. Specifically, some courts have held
contractors liable for “implied” certifications, meaning a Government contractor impliedly
certifies that everything is true that is a condition of payment. Other courts have imposed
liability only when such certification is explicit. A few circuits have found themselves in the
middle-not imposing an automatic liability trigger, which all out implied certification seems to do, and not requiring full and explicit certifications to hold a Government contractor liable.
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