FCA Plaintiffs’ Increasing Reliance on “Tainted Claim” Damages Theory
In U.S. ex rel. Wall v. Circle C Constr., LLC (Feb. 4, 2016), the Sixth Circuit rejected the government’s “fairyland” damages calculation in an FCA case based on violations of the Davis-Bacon Act, vacating the treble damages award for the entire value of what the government argued was a “tainted” claim and remanding with instructions to award actual damages in line with the market value of the government’s injury. In a “Feature Comment” published in The Government Contractor, C&M attorneys explore the origins of the tainted claim damages and plaintiffs’ increasing reliance on the theory in cases in which the market value of the harm is not readily calculable, such as in cases of fraudulent inducement and small business fraud.
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