News & Analysis as of

Fraudulent Inducement False Claims Act (FCA)

Miller & Martin PLLC

Fraud in the Inducement: The Collision of Causation, Confusion, Common Law, and Common Sense

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Federal courts have long recognized fraud in the inducement (also referred to as simply “fraudulent inducement”) (“FITI”) as an actionable theory of recovery under the False Claims Act (“FCA”). However, while loosely rooted...more

A&O Shearman

Supreme Court Decision Endorses Fraudulent-Inducement Theory Under Federal Wire Fraud Statute, Resolving Circuit Split And...

A&O Shearman on

On May 22, 2025, in a significant decision that clarifies the scope of the federal wire fraud statute and resolves a circuit split, the U.S. Supreme Court upheld a pair of wire fraud convictions that had been premised on a...more

McDermott Will & Emery

No Loss, No Problem: SCOTUS Expands Wire Fraud Reach in Kousisis Ruling

On May 22, 2025, the Supreme Court of the United States (the Court) issued its opinion in Kousisis v. United States, holding that a defendant may be convicted of wire fraud for inducing a victim to enter a contract under...more

Saul Ewing LLP

Supreme Court Clarifies Fraudulent-Inducement Theory Under Wire Fraud Statute in Kousisis v. United States

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Case Summary - In Kousisis v. United States, the Supreme Court addressed whether a defendant can be convicted under the federal wire fraud statute without causing the victim a net pecuniary loss....more

Pietragallo Gordon Alfano Bosick & Raspanti,...

No Harm, Still Foul: Supreme Court Affirms Expansive Reach of Wire Fraud Statute in Kousisis

In a recent decision upholding the expansive reach of the federal wire fraud statute (18 U.S.C. §1343), the U.S. Supreme Court ruled in Kousisis v. United States, No. 23-909 (May 22, 2025) that a defendant can be convicted of...more

Baker Donelson

Supreme Court Endorses "Fraudulent Inducement Theory": How the Kousisis v. United States Ruling Widens the Road for Fraud...

Baker Donelson on

If a defendant uses material misrepresentations to induce a party to enter a contract, but does not economically harm the induced party, has the defendant committed fraud? The Supreme Court has decided: Yes. On May 22, 2025,...more

Fox Rothschild LLP

Supreme Court Broadly Interprets Wire Fraud Liability

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On May 22, 2025, the Supreme Court held that a defendant could be convicted of federal wire fraud pursuant to 18 USC § 1343 even when the fraud did not result in any economic loss for the victim. This holding expands the...more

Bradley Arant Boult Cummings LLP

False Claims Act: 2024 Year in Review

Bradley’s Government Enforcement and Investigations Practice Group is pleased to present the False Claims Act: 2024 Year in Review, our annual review of significant False Claims Act (FCA) cases, developments and trends. ...more

Womble Bond Dickinson

The Company You Keep: FCA Investigations of 8(a) Program Contractors

Womble Bond Dickinson on

Federal government contracts are routinely awarded to companies supplying goods and services to U.S. government agencies. According to the Government Accountability Office, in 2023, the federal government committed about $759...more

Dorsey & Whitney LLP

Some Serious Strings Attached: Sponsored Research Funding, Adequate Accounting Systems, and False Claims Act Exposure

Dorsey & Whitney LLP on

The federal government awards billions of dollars each year in sponsored research funding to institutions of higher education, academic research institutions, non-profit organizations, and companies—making federal grants an...more

Akin Gump Strauss Hauer & Feld LLP

Supreme Court and 1st Circuit Significantly Curtail Scope of Federal Property Fraud Statutes

Key Points- In two landmark decisions, the Supreme Court and the 1st Circuit significantly pared back the scope of the federal mail and wire fraud statutes. In Ciminelli v. United States, a political corruption case, the...more

Miles & Stockbridge P.C.

California District Court Issues First False Claims Act Decision Involving the DFARS Cybersecurity Rule

As predicted, a recent decision from the Federal District Court for the Eastern District of California is the first sign of a new, and potentially enormous wave, of Civil False Claims Act, 31 U.S.C. §§ 3729-33 (“FCA”) actions...more

Skadden, Arps, Slate, Meagher & Flom LLP

Aegerion Settles Criminal and Civil Probe of Promotional Practices, REMS and HIPAA Compliance, and Patient Assistance Programs

On September 22, 2017, Aegerion Pharmaceuticals resolved a wide-ranging probe by the Department of Justice (DOJ) regarding the company’s U.S. commercial activities relating to Juxtapid, a lipid-lowering agent for the...more

Mintz - Health Care Viewpoints

Implied False Certification Theory Fails in FCA Case Against Billing Agent

A court in the Southern District of New York (“SDNY” or the “Court”) recently released an important decision applying the Supreme Court’s landmark Escobar ruling to a qui tam action involving percentage fee arrangements for...more

Dorsey & Whitney LLP

First Circuit Affirms Dismissal For CVS Caremark Under Public Disclosure Bar

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The FCA’s public disclosure bar precludes liability when a relator’s allegations have been publicly disclosed in a list of statutorily enumerated sources. Last week, the First Circuit added to the growing jurisprudence both...more

Foley & Lardner LLP

Florida’s False Claims Act – Did You Know It Changed Last Year?

Foley & Lardner LLP on

In June 2013, Florida’s legislature significantly amended Florida’s False Claims Act, Fla. Stat. §§ 68.081-68.092 (“FFCA”), effective July 1, 2013. Although these amendments have not received much publicity or commentary,...more

Epstein Becker & Green

Eighth Circuit Adopts Novel False Claims Act Fraud-in-the-Inducement Theory Long Espoused by Government

Epstein Becker & Green on

On October 15, 2013, a divided three-judge panel of the United States Court of Appeals for the Eighth Circuit rendered a federal False Claims Act ("FCA") judgment against Bayer Healthcare Pharmaceuticals ("Bayer"), based on a...more

Sheppard Mullin Richter & Hampton LLP

Knowingly Underbidding For Government Contract May Lead to False Claims Liability

Contractors usually assume that the statutory prohibition on submitting “false claims” refers to inflated invoices, phony change order costs, and the like. However the courts are giving the relevant statutes a broader meaning...more

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