It’s Objectively Reasonable That the False Claims Act Requires an Objective Scienter Standard, Says Seventh Circuit
On August 12, 2021, the Seventh Circuit joined a growing chorus of circuits to cabin expansive False Claims Act liability by holding that the Act requires an objective scienter standard. Under this standard, a defendant who acted under an incorrect interpretation of the relevant statute or regulation did not act with the requisite knowledge under the FCA if (1) the interpretation was objectively reasonable and (2) no authoritative guidance warned the defendant away from that interpretation.
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