Certain aspects of the recession make companies especially vulnerable to False Claims Act (FCA) litigation. (Read about the potential FCA litigation increase in “Perfect Storm.”)

“Invariably, these suits are brought by former employees,” says Andrew Tulumello, a partner at Gibson, Dunn & Crutcher. “In this climate where there are reductions in force and layoffs and very broad amendments, you can see the makings of a perfect storm.”