How SuperValu Is Changing False Claims Act Litigation and Compliance

• September 01, 2024

• Ilene Albala , Goodwin Procter LLP
• Jordan Moran , Goodwin Procter LLP

It is harder today than in years past to defeat False Claims Act (FCA) cases early in litigation. That is a byproduct of the Supreme Court’s SuperValu decision in 2023.¹ In SuperValu, the Court held that the FCA’s scienter standard is subjective, not objective. That decision eliminated a defense to FCA claims, one that was well-suited for pre-trial resolution. A year later, cases that courts used to dismiss on the pleadings or toss at summary judgment now survive motions practice. That is a worrisome trend for companies in the health care sector. But it also presents an opportunity for those same companies to tweak their compliance programs and start building an evidentiary record of their good faith efforts to understand and comply with the law that governs their operations.

ARTICLE TAGS

• Fraud & Abuse Practice Group
• Fraud and Compliance