The United States Court of Appeals for the District of Columbia Circuit recently upheld a District Court’s dismissal of a False Claims Act (FCA) complaint against a federal government contractor in a case that will be of interest to companies in a variety of industries, including pharmaceuticals, medical devices, and construction. The Court upheld the dismissal – which occurred at Summary Judgment – when the Relator was unable to point to any evidence contradicting the contractor’s evidence that it reasonably had relied upon supplier certifications that the products sold to the government complied with the origin requirements of the Trade Agreements Act of 1979 (TAA), 19 U.S.C.§§ 2501-2581.
In short, as a result of this ruling, businesses that sell their products to the federal government may more reasonably rely on suppliers’ certifications of TAA compliance, and issuers of such certifications may come under greater scrutiny.
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