{"id":6469,"date":"2023-06-06T17:09:49","date_gmt":"2023-06-06T21:09:49","guid":{"rendered":"https:\/\/www.khflaw.com\/news\/?p=6469"},"modified":"2023-07-06T18:12:06","modified_gmt":"2023-07-06T22:12:06","slug":"supreme-court-rules-unanimously-in-favor-of-relators-in-monumental-decision-on-scienter","status":"publish","type":"post","link":"https:\/\/www.khflaw.com\/news\/supreme-court-rules-unanimously-in-favor-of-relators-in-monumental-decision-on-scienter\/","title":{"rendered":"Supreme Court Rules Unanimously in Favor of Relators in Monumental Decision on Scienter"},"content":{"rendered":"<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">\u00a0<\/span><span data-contrast=\"auto\">On June 1, 2023, the United States Supreme Court issued a unanimous opinion (authored by Justice Clarence Thomas), providing a long-awaited answer to the question of whether, under the Federal Claims Act (\u201cFCA\u201d), a defendant \u201cknowingly\u201d submits a false claim by reporting its retail cash price as its \u201cusual and customary price\u201d rather than the lower and more-common price offered through discount programs. The Seventh Circuit twice held that such reporting is not a \u201cknowingly\u201d false claim under the FCA because \u201ca reasonable person\u201d could reach a similar interpretation of \u201cusual and customary price.\u201d <\/span><span data-contrast=\"none\">United States v. Supervalu Inc.<\/span><span data-contrast=\"none\">, 9 F.4th 455 (7th Cir. 2021); <\/span><span data-contrast=\"none\">United States ex rel. Proctor v. Safeway, Inc.<\/span><span data-contrast=\"none\">, 30 F.4th 649 (7th Cir. 2022)<\/span><span data-contrast=\"auto\">. The Supreme Court vacated the Seventh Circuit\u2019s judgments and ruled that the FCA scienter requirement refers to a defendant\u2019s knowledge and subjective beliefs \u2013 not to what an objectively reasonable person may have known or believed. <\/span><i><span data-contrast=\"auto\">United States ex rel. Shutte v. SuperValu Inc.<\/span><\/i><span data-contrast=\"auto\">, 598 U.S. (2023) The Court also determined that facially ambiguous language is not a sufficient reason to prohibit a finding that a defendant knew its claims were false.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559731&quot;:720,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span> <a href=\"https:\/\/www.khflaw.com\/news\/supreme-court-rules-unanimously-in-favor-of-relators-in-monumental-decision-on-scienter\/#more-6469\" class=\"more-link\">Continue reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0On June 1, 2023, the United States Supreme Court issued a unanimous opinion (authored by Justice Clarence Thomas), providing a long-awaited answer to the question of whether, under the Federal Claims Act (\u201cFCA\u201d), a defendant \u201cknowingly\u201d submits a false claim by reporting its retail cash price as its \u201cusual and customary price\u201d rather than the [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":6346,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[500],"tags":[],"coauthors":[565],"class_list":["post-6469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-whistleblower-actions","publication_lawyer-kandis-kovalsky"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Supreme Court Rules Unanimously in Favor of Relators in Monumental Decision on Scienter &#8212; 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