Is the False Claims Act—a civil war era law to keep contractors and suppliers from defrauding the government—in need of major reform? It depends whom you ask: Critics say it’s inflexible and overly punitive; others say it’s doing exactly what it’s supposed to do.
In a July hearing, “Oversight of the False Claims Act,” David Ogden, representing the U.S. Chamber of Commerce’s Institute for Legal Reform, stated that the Act is “less effective than it could be at reducing fraud,” and he identified several shortcomings. Among the changes Ogden recommended: encouraging whistleblowers to report within their organizations, through certified compliance programs, before filing a qui tam action. He also recommended that “for companies with certified compliance programs, a factor in considering damages would be the relative culpability of the company.”
