False Claims Act Exposure Risks for Industries Fighting COVID-19


This is the second in a series of client alerts addressing the likely role of the False Claims Act in the wake of the massive federal government response to the COVID-19 pandemic.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act makes available more than $2 trillion in federal loans, grants and other financial assistance to a wide range of industries that have been affected by the COVID-19 pandemic. CARES Act funding dwarfs the federal response to the 2007–2008 financial crisis, when approximately $800 billion of federal stimulus and recovery funds were authorized by Congress. As during the financial crisis, however, the availability of federal aid presents risk for those who seek to participate in these programs, since the Department of Justice (DOJ) has made it a priority to prosecute those who fraudulently obtain CARES Act funding.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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