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Seventh Circuit Applies Offsets to FCA Damages Before Trebling

Client Alert | 1 min read | 03.22.13

In U.S. v. Anchor Mortgage Corp. (7th Cir. Mar. 21, 2013), Chief Judge Easterbrook held that, in calculating the damages to be trebled under the FCA, courts must use a "contract measure of loss" approach that would take into account any offsets for value or payments received by the government prior to trebling. The court read the Supreme Court's decision in U.S. v. Bornstein to require third-party payments to be subtracted after multiplying the damages only when such payments are not part of a "contract measure of loss" calculation, a limitation that could significantly reduce FCA damages in many contexts.


Insights

Client Alert | 3 min read | 07.23.26

Protester Beware: Recent GAO Decision Suggests Traditional “Reasonable Possibility” Prejudice Standard May Be Evolving

It is well established that “[c]ompetitive prejudice is an essential element of every viable protest.” Yet, for decades, the U.S. Government Accountability Office (GAO) has tempered this requirement with two critical corollaries: protesters need only demonstrate a “reasonable possibility” that they were prejudiced by an agency’s actions, and GAO “will resolve doubts regarding prejudice in favor of the protester.” These principles have been consistent features of GAO’s bid protest jurisprudence for more than 30 years. See, e.g., United Int’l Eng'g, Inc., B-245448, Jan. 29, 1992, 71 CPD ¶ 177....