Split D.C. Circuit Limits False Claims Act Liability Under Federal Grants
Client Alert | 1 min read | 09.17.04
In U.S. ex rel. Totten v. Bombardier Corp. (Aug. 27, 2004), a divided D.C. Circuit upheld dismissal of a qui tam complaint alleging that a contractor for a federal grantee had submitted false claims to the grantee, reasoning that presentation of the claims to (and their payment by) the federal grantee did not, by itself, satisfy the FCA provision that actionable claims be "presented to an officer or employee of the … Government" (31 USC 3729(a)(1), emphasis added), or the alternate FCA provision imposing liability for a false record made in order to get a false claim "paid or approved by the Government" ((31 USC 3729(a)(2), emphasis added). The dissent argued vigorously that the consequence of the majority's opinion is a "dramatic cutback" in FCA coverage because it would preclude liability in the common situation where a grantee is not required to seek Government approval before paying a contractor's invoice.
Insights
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SCOTUS Holds IEEPA Tariffs Unlawful
On February 20, 2026, the Supreme Court issued a pivotal ruling in Trump v. V.O.S. Selections, negating the President’s ability to impose tariffs under IEEPA. The case stemmed from President Trump’s invocation of IEEPA to levy tariffs on imports from Canada, Mexico, China, and other countries, citing national emergencies. Challengers argued—and the Court agreed—that IEEPA does not delegate tariff authority to the President. The power to tariff is vested in Congress by the Constitution and cannot be delegated to the President absent express authority from Congress.
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Proposed NY Legislation May Mean Potential Criminal Charges for Unlicensed Crypto Firms
