{"id":123,"date":"2007-10-31T13:12:51","date_gmt":"2007-10-31T13:12:51","guid":{"rendered":"http:\/\/www.whistleblowerlawyerblog.com\/2007\/10\/false_claims_act_whistleblower.html"},"modified":"2021-06-11T17:52:23","modified_gmt":"2021-06-11T21:52:23","slug":"false_claims_act_whistleblower","status":"publish","type":"post","link":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/false_claims_act_whistleblower\/","title":{"rendered":"False Claims Act Whistleblower Case to Be Decided By Supreme Court"},"content":{"rendered":"

This week, the United States Supreme Court agreed to hear a False Claims Act<\/a> whistleblower case filed against the General Motors Corporation and its former division, Allison Engine Company. The alleged fraud concerns subcontracts for building parts for the U. S. Navy’s guided missile destroyers. Each of the 50 destroyers in question costs the taxpayers over $1 billion. <\/p>\n

At issue in this case is an argument being made by the defendants that the whistleblower and the government cannot attack the alleged fraud scheme under the False Claims Act<\/a> based on the failure of the subcontractor (Allison Engine Company) to personally present claims for payment to the United States government. (In short, even if fraud occurred, the subcontractor cannot be sued under the False Claims Act because the subcontractor did not itself present false claims to the federal government.) This rule, known as the “Totten” rule, was first articulated by the now Chief Justice of the Supreme Court John Roberts when he previously served on the U. S. Court of Appeals for the D. C. Circuit. The “Totten” rule allows subcontractors to escape liability under the False Claims Act if they were not the actual party who formally presented the claim to the government for payment. <\/p>\n

In the case which the Supreme Court has agreed to review, the lower Appeals Court supported the whistleblower’s claims and explicitly rejected the “Totten” rule. The Court of Appeals reasoned that the subcontractor’s liability should not depend on a technical presentment of a claim to the government, but whether government money was used to pay a false and fraudulent claim for payment on the contract. <\/p>\n

Continue reading \u2192<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

This week, the United States Supreme Court agreed to hear a False Claims Act whistleblower case filed against the General Motors Corporation and its former division, Allison Engine Company. The alleged fraud concerns subcontracts for building parts for the U. S. Navy’s guided missile destroyers. Each of the 50 destroyers in question costs the taxpayers […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,3],"tags":[],"class_list":["post-123","post","type-post","status-publish","format-standard","hentry","category-false-claims-act","category-recent-developments"],"yoast_head":"\nFalse Claims Act Whistleblower Case to Be Decided By Supreme Court — Whistleblower Lawyer Blog — October 31, 2007<\/title>\n<meta name=\"description\" content=\"This week, the United States Supreme Court agreed to hear a False Claims Act whistleblower case filed against the General Motors Corporation and its — October 31, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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