So far this year, three False Claims Act defendants have challenged judgments against them based on the Excessive Fines Clause of the Eighth Amendment. Remarkably, two were successful, as the District of Minnesota more than...more
You may recall that earlier this year the IRS launched an initiative to pursue 125,000 “high-income, high-wealth” taxpayers who have not filed taxes since 2017. These were cases where the IRS received third party information...more
For years, FBAR litigants have made the commonsense argument that large willful FBAR penalties, which can exceed the value of the unreported foreign accounts themselves, violate the excessive fines clause of the Eighth...more
The Situation: The False Claims Act ("FCA") imposes treble damages on defendants, as well as mandatory penalties per false claim. Because alleged false claims often involve much smaller amounts—for example, in cases with a...more
In the high-stakes realm of False Claims Act (FCA) litigation per-claim penalties can reach daunting levels that dwarf even treble damages. A recent ruling from the Eighth Circuit Court provides valuable guidance on the...more
On February 8, the U.S. District Court for the District of Minnesota ruled that a $487 million False Claims Act (FCA) damages award entered last year against Precision Lens and its co-founder violated the Eighth Amendment’s...more
In Tyler v. Hennepin County, a unanimous U.S. Supreme Court concluded that the State of Minnesota violated a property owner's constitutional rights by keeping the excess proceeds from a tax lien sale. Geraldine Tyler owned a...more
On May 25, 2023, the United States Supreme Court, in Tyler v. Hennepin County, Minnesota, et al., reaffirmed the general principle that a creditor that has seized property to satisfy a debt is not entitled to the remaining...more
“The taxpayer must render unto Caesar what is Caesar’s, but no more.” Tyler v. Hennepin County, No. 22-166, Slip Op. at 14 (May 25, 2023) - Less than a month after oral argument, the United States Supreme Court ruled...more
There are multiple components to the risk defendants must consider when faced with going to trial for a matter involving the False Claims Act (FCA). Setting aside the incalculable impact that litigation can have on business...more
The Ninth Circuit recently affirmed the denial of the United States’ second motion for preliminary order of forfeiture of the Mongol Nation’s trademarks. The Ninth Circuit held that the Racketeer Influenced and Corrupt...more
Key Points The volume of new False Claims Act (FCA) case filings remained high in 2021, and the Department of Justice (DOJ) collected more than $5.6 billion in settlements and judgments — the second-largest annual total in...more
As for the Judiciary, the U.S. Supreme Court did not issue any relevant decisions nor grant certiorari in any notable FCA cases in FY21. To the contrary, they denied petitions to review appellate cases of potential...more
A defendant who violates the FCA can be liable for treble damages plus a civil penalty of $5,500 to $11,000 (adjusted for inflation) for each false claim. Meanwhile, FCA lawsuits often involve tens of thousands of alleged...more
In late December, the U.S. Circuit Court of Appeals for the Eleventh Circuit issued its decision in Yates v. Pinellas Hematology & Oncology, P.A. The appellate court affirmed the district court’s imposition of damages and...more
Former Theranos CEO Convicted of Defrauding Investors - Elizabeth Holmes, founder and former CEO of blood testing start-up Theranos, was found guilty of one count of conspiracy and three counts of wire fraud for her...more
The Eleventh Circuit recently ruled that the Excessive Fines Clause applies in declined qui tam cases. That is the good news. However, the Eleventh Circuit also upheld a judgment where the ratio of total liability to actual...more
The Eleventh Circuit has become the first federal court of appeals to directly address whether the Eighth Amendment’s Excessive Fines Clause applies to the monetary award in a declined False Claims Act (FCA) case. And in an...more
On March 18, 2021, retailer Union Square Supply, Inc. filed a civil rights class action lawsuit in the Southern District of New York challenging New York City’s price gouging enforcement practices. The complaint alleges that...more
Last week, I posted the first installment of a two-part series on recent excessiveness decisions. In this second installment, I discuss two additional excessiveness decisions....more
During the past couple of months, courts have been busy addressing excessiveness challenges to punitive damages awards. In this post, I discuss two recent decisions. In a second post, I will cover two additional decisions....more
As more and more states are allowing legal use of marijuana, medical marijuana businesses are faced with large tax bills because of marijuana’s continued classification as a Schedule I controlled substance under federal law. ...more
Cities and towns have become increasingly aggressive in their efforts to avoid blight resulting from vacant and foreclosed properties and enforce the state and local sanitary codes. At what point does a valid code violation...more
On February 20, the U.S. Supreme Court handed down its decision on the Eighth Amendment’s excessive fines clause. In Timbs v. Indiana, 2019 DJDAR 1337, Justice Ruth Bader Ginsburg authored a unanimous decision holding that...more
In a ruling that significantly curbs the power of state and local law enforcement authorities to seek forfeiture of assets connected to criminal activity, the U.S. Supreme Court recently held that the Eighth Amendment’s...more