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False Claims Act Penalties Moving Full Steam Ahead

steam trainBy August 1, 2016, all federal agencies must adjust their civil monetary penalties, including penalties required by the False Claims Act (“FCA”), to account for inflation. Last month, the Railroad Retirement Board, which occasionally has FCA cases, became the first agency to adjust its penalties. These adjustments are in response to Congress’s Bipartisan Budget Act of 2015 (“Act”), which requires federal agencies to update their civil monetary penalties to account for inflation, including a cost-of-living adjustment percentage. Under the new rule, FCA penalties will increase from $5,500 to $10,781, with maximum per-claim penalties increasing from $11,000 to $21,563. Continue Reading