Court Applies Totten Reasoning To Subcontractor Liability Under FCA
Client Alert | 1 min read | 03.23.05
Applying the reasoning of the D.C. Circuit in U.S. ex rel. Totten v. Bombardier Corp., 380 F.3d 488 (D.C. Cir. 2004), regarding lack of False Claims Act (FCA) liability for claims made by contractors of federal grantees when those claims are not presented to the Government for payment [see Crowell & Moring Bullet Points 9/16/2004 and 12/16/04), the Southern District of Ohio in U.S. ex rel. Sanders v. Allison Engine Co. (Mar. 11, 2005) dismissed a qui tam case for failure to present evidence that the defendant subcontractor's claims had been presented to the government for payment. In so doing, the court distinguished longstanding Supreme Court precedent imposing subcontractor liability when the prime passes the sub's false claim up to the government.
Insights
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Federal Roundup: Updates for PBMs and Medicare Advantage Organizations
In June 2026, federal regulators and lawmakers continued their efforts to improve drug affordability through targeted reforms. These recent developments will primarily impact pharmaceutical manufacturers, managed care organizations, and pharmacy benefit managers (PBM) serving Medicare Part D program members. PBMs, Medicare Advantage organizations, and Part D sponsors should monitor these changes in the interest of maintaining compliance and providing input on regulatory proposals that may influence their business operations or compensation structures in the future.
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Twin Executive Orders Seek to Spur Quantum Leap in Technology and Cybersecurity
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