Second Circuit Addresses “Obligation” Requirement of False Claims Act’s Reverse False Claim Provision
Bass Berry & Sims – The Second Circuit joined the Third, Fifth, Tenth, and D.C. Circuits to hold that “the mere fact of a violation” that could give rise to a civil penalty at the government’s discretion does not create an obligation under the FCA’s reverse false claim provision. Instead, “a duty to pay is ‘established’ only when it triggers an immediate and self-executing duty to pay.”
