Senator Grassley Discusses Importance of False Claims Act, Proposes Potential Reforms

During a keynote address for the 2021 Federal Bar Association Qui Tam Conference, Senator Chuck Grassley (R-IA) discussed the need for certain reforms to the False Claims Act (“FCA”).  Senator Grassley, who was a key architect of the FCA’s 1986 Amendments, highlighted the importance of the FCA, noting that it has recovered more than $64 billion for taxpayers since 1986. 

In terms of potential reform, Senator Grassley noted a troubling trend of courts imposing “a more stringent materiality standard than the text of the statute provides,” which is something that Congress could clarify.  In addition, Senator Grassley expressed concern about the lack of transparency into the Department of Justice’s decision to not pursue a particular whistleblower case, saying that DOJ “should state a legitimate reason for deciding not to pursue a case in court.”  Finally, Senator Grassley noted that a strong FCA is particularly important in light of the opportunities for fraud occasioned by the passage of major COVID-19 relief legislation.

Read more about Senator Grassley’s address here.

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