False Claims Act Defense
With high stakes of treble damages, mandatory penalties, and potential collateral consequences such as exclusion, suspension or debarment, companies turn to Arnold & Porter for our insights and extensive experience in False Claims Act compliance, investigations, negotiations and defense. We represent global leaders in diverse industries including healthcare, pharmaceuticals, medical devices, defense, aerospace, accounting, information technology, financial services, telecommunications, energy, and insurance.
We have been involved in some of the highest profile civil and criminal fraud and False Claims Act cases brought by the federal government or state attorneys general offices. Our veteran team includes the former Attorney General for the District of Columbia, former lawyers from the Department of Justice (DOJ) and US Attorney's offices with years of experience in False Claims Act matters, together with former lawyers from the Department of Defense, Department of Health and Human Services, Food and Drug Administration, Environmental Protection Agency, Securities Exchange Commission, Department of Energy, and experienced defense counsel who vigorously defend companies by anticipating, strategically responding to, and litigating government enforcement actions.
We routinely work with companies to minimize False Claims Act exposure by tailoring compliance programs to the organization's specific need. We conduct risk reviews and develop company business ethics codes and compliance programs in order to mitigate risk and demonstrate a company's present responsibility as a government contractor. We regularly provide training for legal departments and business employees.
Recognizing that civil investigations are often accompanied by parallel criminal investigations, we coordinate strategy and response, to both the criminal and civil matters. Our white collar attorneys frequently obtain favorable results with prosecutors either to decline prosecution or to enter into non-prosecution or deferred prosecution agreements.
Companies frequently defend matters at both the federal and state or local levels, often simultaneously. Our substantial experience in state Attorney General investigations and litigation allows us to coordinate effective, efficient responses to investigations or litigation in multiple jurisdictions.
As a result of our in-depth knowledge of the underlying industries, as well as the statutory and regulatory framework in False Claims Act cases, we have a successful track record persuading the government not to intervene, or negotiating fair settlements with the government or relator efficiently and with minimal business disruption. If the case proceeds to litigation, we are adept at obtaining dismissals or achieving favorable results at trial and on appeal.
- Technology services company in resolving for a nominal payment a DOJ investigation into alleged mischarging related to inflated labor qualifications, including alleged falsified resumes.
- Aerospace company in convincing the Department of Justice not to intervene in a qui tam case and in persuading the relator to drop the case prior to our filing a motion to dismiss.
- Commercial item services contractor in False Claims Act matter involving a US Navy contract.
- Technology company in a defective specification-related qui tam claim against the US Navy.
- FORTUNE 100 information technology company in negotiating successful resolution of criminal and civil fraud and False Claims Act allegations concerning cost mischarging under a DoD computer networking contract.
- Large technology services provider in two civil False Claims Act matters, one of which was a qui tam case. The DOJ declined to pursue both cases, and in the qui tam case, the relator dropped the matter without litigation.
- Technology services company in a DOJ criminal investigation into alleged Anti-Kickback Act and Procurement Integrity Act violations related to activities in Southwest Asia. The government declined to prosecute the company on either matter.
- Computer company in conducting an international internal investigation, assisted with voluntary disclosure, and obtained favorable settlement of False Claims Act liability.
- Technology services company in a lengthy federal investigation and now is defending CSC in an unprecedented civil action alleging violations of the federal and New York False Claims Acts filed by the Office of the United States Attorney for the Southern District of New York and by the New York Attorney General.
- Aircraft maintenance contractor that allegedly failed to perform required tests after repairing aircraft.
- DoD contractor that allegedly allowed Russian nationals employed by a subcontractor to perform software work on a project for an intelligence agency. The FCA case was settled on favorable terms, and the federal prosecutors concluded that the client and its employees had no criminal liability.
- Technology services company in settling for a nominal payment a DOJ investigation into a former subsidiary’s alleged failure to conduct testing of aircraft engines as required by the contract.
- DoD contractor whose employees, based in Afghanistan, accepted kickbacks in choosing housing and security services. The case was resolved with payment of minimal FCA penalties.
- Government contractor accused of falsely certifying that the combat helmets its subcontractor produced met ballistic test requirements. The case was settled on favorable terms.
- Industrial gases company in a False Claims Act case; successfully litigated a multi-billion claim against an energy company, twice in district court and on appeal to the circuit and Supreme Courts.