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
Client Alert | 3 min read | 11.21.25
On November 7, 2025, in Thornton v. National Academy of Sciences, No. 25-cv-2155, 2025 WL 3123732 (D.D.C. Nov. 7, 2025), the District Court for the District of Columbia dismissed a False Claims Act (FCA) retaliation complaint on the basis that the plaintiff’s allegations that he was fired after blowing the whistle on purported illegally discriminatory use of federal funding was not sufficient to support his FCA claim. This case appears to be one of the first filed, and subsequently dismissed, following Deputy Attorney General Todd Blanche’s announcement of the creation of the Civil Rights Fraud Initiative on May 19, 2025, which “strongly encourages” private individuals to file lawsuits under the FCA relating to purportedly discriminatory and illegal use of federal funding for diversity, equity, and inclusion (DEI) initiatives in violation of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). In this case, the court dismissed the FCA retaliation claim and rejected the argument that an organization could violate the FCA merely by “engaging in discriminatory conduct while conducting a federally funded study.” The analysis in Thornton could be a sign of how forthcoming arguments of retaliation based on reporting allegedly fraudulent DEI activity will be analyzed in the future.
Client Alert | 3 min read | 11.20.25
Client Alert | 3 min read | 11.20.25
Client Alert | 6 min read | 11.19.25
