Compliance » Fourth Circuit Enforcing Civil War-Era Law Could Cost Companies Millions

Fourth Circuit Enforcing Civil War-Era Law Could Cost Companies Millions

Man in suit holding stack of money and wooden gavel

July 29, 2014

In July the Fourth Circuit Court of Appeals ruled that contractors who mislead the government can be liable under the False Claims Act, a Civil War-era law that multiplies penalties on the basis of numbers of invoices filed. Big contractors routinely file thousands of invoices per contract. Individuals can sue under the Act, and are eligible to receive 15 to 30 percent of the penalty. The penalty per invoice can range from $5000 to $11,000.

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