Materiality & the Public Disclosure Bar: Fending Off Qui Tam Attacks
The recent False Claims Act case of United States ex rel. Hassan Foreman v. AECOM highlights a number of the unique issues involved in qui tam actions, including the shifting significance of government knowledge. While that knowledge alone may not suffice to bar allegations under the public disclosure rule, it may make the allegations immaterial if the government continues to award contract extensions. In this case, the district court dismissed a whistleblower’s suit alleging that AECOM engaged in improper billing and other violations, on the grounds that that the alleged misrepresentations were not material because the government knew of the violations and continued to make payments.
