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On June 9 the United States Supreme Court dealt a blow to the U.S. government, and those suing on its behalf, in Allison Engine Co. v. United States ex rel. Sanders, 553 U.S. ___ (June 9, 2008), a case under the False Claims Act. The Court rejected an expansive interpretation of the statute that would have extended liability to almost any company in any industry. But the decision was not a complete victory for business. For the first time, the Supreme Court held that the FCA applies to subcontractors on government projects, a group that until now had escaped liability.

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