The Connecticut General Assembly is considering legislation that could dramatically expand the scope of the state’s version of the federal False Claims Act. Currently, the attorney general and private whistleblowers are limited to bringing cases related to state healthcare and human services programs. The General Assembly is considering a bill that would remove this limitation and open up the state’s false claims law to almost every state-funded project or program. As a result, companies that do any business with the state could face a surge of new investigations and whistleblower suits.

At the federal level, the FCA imposes liability on anyone who knowingly submits or causes the submission of false or fraudulent claims for payment or approval to the federal government. Anyone violating the FCA is liable for treble damages plus a per claim penalty. While the federal government can pursue these damages and penalties on its own, the FCA also allows private citizens to file suits on behalf of the government (so called “qui tam” suits) and, potentially, share in the government’s recovery. This potent combination of treble damages and the incentive for whistleblowers to bring claims on behalf of the federal government has made the FCA one of the most active and contested areas of federal law. For example, the Department of Justice reported that settlements and judgments under the FCA in fiscal year 2022 exceeded $2.2 billion.

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