The federal government’s recoveries from investigations and cases involving the False Claims Act (FCA) fell in fiscal year (FY) 2020 to US$2.2 billion from US$3.05 billion in FY2019. However, with an influx of approximately US$4 trillion in government assistance disbursed in 2020 to combat the effects of the COVID-19 pandemic, and with more expected in FY2021, as well as an increased level of assertiveness in enforcement actions expected from the Biden administration, the decrease in FCA recoveries is expected to have been temporary. These factors, combined with an increasingly difficult regulatory compliance framework involving cybersecurity, supply chain assurance, and other unique requirements for companies that conduct business with the government, pose heightened FCA risk for aerospace, defense, and government services (ADG) companies. Below, we examine recent enforcement trends in the ADG industry sector and key FCA-related case law developments that could
affect your business.
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