Substantial Penalties Under the FCA Without Real Damages Violates Eighth Amendment
Client Alert | 1 min read | 02.23.12
Using reasoning that could prove useful to other FCA defendants, the court in U.S. ex rel. Bunk v. Birkart Globistics GmbH & Co. (E.D. Va. Feb. 14, 2012), after the jury found over 9,000 false claims based on invoices submitted, refused to award statutory penalties of between $50.2 and $100.4 million. The court held that, when the qui tam relator failed to show that the government suffered any damage, imposing penalties of this magnitude would have violated the Eighth Amendment’s Excessive Fines Clause and, because it lacked discretion under the FCA to fashion a civil penalty that would be within Constitutional limits, no penalties could be imposed.
Insights
Client Alert | 10 min read | 07.03.25
The Orders represent FinCEN’s first actions using new special measures authority under the Fentanyl Sanctions Act and FEND Off Fentanyl Act of 2024 (codified at 21 U.S.C. § 2313a) (the “Fentanyl Act”) and continue the Trump Administration’s broader efforts against transnational cartels and narcotics trafficking.
Client Alert | 4 min read | 07.02.25
Client Alert | 4 min read | 07.02.25