Supreme Court Decision Syllabus (SCOTUS Podcast)

U.S. ex rel. Schutte v. SuperValu Inc. (False Claims Act)

June 01, 2023 Jake Leahy Season 2022 Episode 30
Supreme Court Decision Syllabus (SCOTUS Podcast)
U.S. ex rel. Schutte v. SuperValu Inc. (False Claims Act)
Show Notes

Supreme Court's decision is here. 

The False Claims Act allows for private citizens to bring a cause of action on behalf of the United Sates, against a person who "knowingly" submits a "false claim" to a federal program. The defendant can meet the knowledge requirement by, 1.) actual knowledge that the reported prices were not "usual and customary," 2.) being aware of a substantial risk that the retail prices were not usual and customary, or 3.) awareness of a substantial and unjustifiable risk but the defendant decided to submit the claim regardless. The Court adopted a subjective standard, even if an objective test would not meet the same requirement.