A False Claims Act lawsuit filed in federal court is among the most serious legal threats a business can face. The federal False Claims Act creates civil liability for any person or entity that knowingly submits false or fraudulent claims for payment to the federal government, and it provides for substantial damages — up to three times the government’s actual damages, plus civil penalties for each false claim submitted. Defending against these claims requires counsel with deep experience in both federal civil litigation and the regulatory framework applicable to the client’s industry, combined with the ability to develop and execute an effective defense strategy from the earliest stages of the proceeding.
Mandelbaum Barrett PC partners Raj Gadhok, Esq. and Brian Block, Esq. successfully defended a client in a federal court False Claims Act lawsuit. The firm’s litigation practice advises businesses and individuals on complex federal litigation, including healthcare law matters and regulatory defense in federal courts throughout New Jersey and New York. This successful defense reflects the firm’s ability to navigate the complex legal and factual landscape of False Claims Act litigation and protect clients from the severe consequences these cases can carry.
Defending Against False Claims Act Litigation
False Claims Act cases proceed differently from ordinary civil litigation in several important respects. Many False Claims Act cases are initiated as qui tam actions — filed under seal by private plaintiffs (called relators) on the government’s behalf, giving the Department of Justice the opportunity to investigate and decide whether to intervene before the defendant even learns of the lawsuit. When the government declines to intervene, the relator may proceed on their own, and the defendant must assess the strength of the relator’s case and develop a defense tailored to the specific allegations.
Defenses in False Claims Act cases can include attacking the falsity of the alleged claims, demonstrating that the defendant lacked the requisite knowledge (scienter) that the claims were false, establishing that the claims were not material to the government’s payment decision, and challenging the government’s calculation of damages. The complexity of these cases — which often involve voluminous records, complex regulatory compliance questions, and expert testimony — requires experienced federal litigation counsel who can manage both the legal and factual complexity of the defense.
According to the U.S. Department of Justice, the False Claims Act is the federal government’s primary tool for recovering funds lost to fraud, and the DOJ recovers billions of dollars annually through both settlements and judgments in False Claims Act cases. Defendants facing these claims should work with experienced litigation counsel as early as possible to assess their exposure and develop an effective defense strategy.
Contact Mandelbaum Barrett PC for Federal Litigation Guidance
If your business is facing a False Claims Act lawsuit or other complex federal litigation in New Jersey or New York, the litigation team at Mandelbaum Barrett PC can help.
Reach out through our contact page to speak with our team. We are here to defend clients against complex federal claims and protect their interests throughout the litigation process.
These stories are successful case results from our attorneys. Please note that results may vary depending on your particular facts and legal circumstances.