(5th Cir., filed March 28, 2016): Arguing that if allowed to stand, the decision below would produce deep regulatory uncertainty for manufacturers and other businesses that contract directly or indirectly with the Federal Government. Under the district court’s ruling, a manufacturer could receive authoritative assurances from the Federal Government that it is complying with federal regulations—and yet, when the manufacturer later certifies that it is in compliance, it can be found in violation of the False Claims Act (FCA) and subjected to hundreds of millions of dollars in damages. That distorts the FCA—which targets “false” claims to obtain money from the Government. A statement that a product is in compliance cannot be “false” when the Government itself has authoritatively decided that the product is in compliance.
