Private "whistleblowers" and the Government continue to stretch the reach of the False Claims Act. Businesses that never made a false statement to the Government, never received a dime in Government funds, and never presented a claim to the Government now can face liability under the FCA. Businesses are at risk for millions of dollars because they may have made an incorrect statement "having a natural tendency to influence or be capable of influencing" the Government's decision to make a payment.
Recently insurers have faced liability under the increasingly elastic FCA for false claims submitted by policy holders to the federal government even though the insurers neither submitted the claim nor were paid for it. Click here for an article published in Risk & Insurance, which examines how the FCA has been used to reach private insurance companies that are indirectly involved in government programs.