Supreme Court to Consider the False Claims Act’s Intent Standard

On Friday, January 13, the Supreme Court agreed to consider whether the False Claims Act (“FCA”) covers compliance lapses tied to regulatory interpretations that are incorrect but “objectively reasonable.” The Supreme Court granted petitions for writs of certiorari in two cases, United States ex rel. Schutte v. SuperValu, Inc. and United States ex rel. Proctor v. Safeway, Inc., which will be consolidated and set for oral argument. The Supreme Court’s decision in the cases should resolve a circuit split over the role of a defendant’s subjective intent in determining scienter.

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