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John L. Sinatra Jr., a partner at Hodgson Russ, writes: There is no easier way for a company to turn a small gain into a multi-dimensional catastrophic loss than by violating the False Claims Act. First, damages are typically trebled before any possible offsets are applied, then civil penalties are added. Add in defense costs, judgments, and settlements; the stigma facing the company in the marketplace; and the trouble retaining sales and employees, and a pending whistleblower case from the Justice Department can be a company's worst fear. So what is a company to do?
March 03, 2009 at 12:00 AM
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