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March 8, 2021
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Supreme Court Uses GM to Set Example
(2008-06-09)
(wgvu) - WASHINGTON (AP) - The U.S. Supreme Court has ruled unanimously
that a whistleblower law intended to expose fraud can be applied to
subcontractors and other indirect recipients of federal funds.
The case before the court involved alleged contract fraud by a
former unit of General Motors Corp. At issue was whether the False
Claims Act covers any fraudulent claim paid for by government
funds, or only fraudulent claims directly submitted to a government
official.
Justice Samuel Alito charted a middle path, saying in Monday's
ruling the law can be used if fraudulent statements ultimately are
intended to get the government to pay claims.
The whistleblower law does not apply in situations in which a
subcontractor does not intend the government to rely on a
fraudulent claim as a condition of payment.
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