The great myths of state False Claims Acts

Partner Jonathan Diesenhaus and Senior Associate Marisa Cruz-Glaudemans recently drew on their vast False Claims Act (FCA) litigation experience to revisit and update their 2013 U.S. Chamber Institute for Legal Reform (ILR) research paper examining the efficacy of state qui tam statutes.

The authors conclude that the incentives for states to adopt their own qui tam statutes are offset by the increasingly burdensome involvement of state prosecutors and state agency resources in complex FCA litigation. Though well-intentioned to provide a mechanism to police local fraud, state qui tam statutes do not appear to be having that impact. Instead, the proliferation of state qui tam statutes appears to be primarily benefitting whistleblowers and their attorneys.

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