U.S. Supreme Court

Supreme Court Allows Whistle-Blower Claims Against Subcontractors

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The U.S. Supreme Court has ruled that a federal whistle-blower law allows suits against government subcontractors if they lied in an attempt to get the government to pay false claims.

The unanimous decision (PDF posted by SCOTUSblog) by Justice Samuel A. Alito Jr. took a middle ground, the Associated Press reports. He wrote that a whistle-blower must show a defendant intended the false statement to be material to the government’s decision to pay.

A former unit of General Motors Corp. had contended the law covers only fraudulent claims directly submitted to the government. The whistle-blowers had contended the law covers any fraudulent claim paid by government funds.

The case is Allison Engine v. United States.

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