Insights

Washington – June 6, 2024: Crowell & Moring earned 78 rankings for 67 lawyers, as well as 41 national and statewide practice area rankings, in the Chambers USA 2024 guide. The rankings are driven by independent interviews of clients and lawyers at peer firms.

Washington – June 1, 2023: Crowell & Moring earned 82 rankings for 68 lawyers across 48 categories, as well as 37 national and statewide practice area rankings, in the Chambers USA 2023 guide. The rankings are driven by independent interviews of clients and lawyers at peer firms.

On October 22, 2024, the Department of Justice (DOJ) announced that Pennsylvania State University (Penn State) will pay $1.25 million to resolve allegations that it violated the False Claims Act (FCA) by failing to comply with contractually mandated cybersecurity requirements by the Department of Defense (DoD) and National Aeronautics and Space Administration (NASA).  The announcement marks the most recent settlement under DOJ’s Civil Cyber-Fraud Initiative although, unlike prior settlements, there is no allegation of a cybersecurity incident or breach that was related to or caused by the contractor’s alleged noncompliance.

Judge Kathryn Kimball Mizelle of the District Court for the Middle District of Florida recently declared the False Claims Act qui tam provisions unconstitutional in U.S. ex rel. Zafirov v. Fla. Med. Assocs., LLC, -- F.Supp.3d --, 2024 WL 4349242 (M.D. Fla. Sept. 30, 2024), turning up the heat on a simmering constitutional fight that is increasingly likely to reach the Supreme Court in the next few years. Judge Mizelle's decision was the first to strike down the FCA qui tam provisions, but not the first to consider the issue. Arguments challenging the constitutionality of the qui tam provisions proliferated after Justice Thomas indicated some doubt about the qui tam device in his dissent in U.S. ex rel. Polansky v. Exec. Health Res., 599 U.S. 419 (2023). But every other judge to consider the issue has upheld the constitutionality of the qui tam provisions.

In a novel False Claims Act (FCA) ruling, on September 30, 2024, Judge Kathryn Kimball Mizelle of the District Court for the Middle District of Florida upended decades of FCA jurisprudence in declaring the qui tam provisions of the FCA unconstitutional in U.S. ex rel. Zafirov v. Florida Medical Associates, LLC, 2024 WL 4349242 (M.D. Fla. Sept. 30, 2024). This decision follows Justice Thomas’ dissent in the recent Supreme Court decision, U.S. ex rel. Polansky v. Executive Health Resources, Inc., 599 U.S. 419 (2023), where he posited, “[t]here are substantial arguments that the qui tam device is inconsistent with Article II and that private relators may not represent the interests of the United States in litigation.” While Justice Thomas’ implicit constitutional challenge was not entirely new to FCA practitioners, including it in his Polansky dissent, with Justices Kavanaugh and Barrett in a concurring opinion noting their agreement that the Court should consider the constitutional questions in an appropriate case, swung wide open a door of opportunity for defendants and their counsel to attempt to dismiss FCA qui tam suits on constitutional grounds. Judge Mizelle’s decision in Zafirov is the first of its kind to actually dismiss a qui tam suit on constitutional grounds, and will likely lead to an avalanche of similar motions in nearly every non-intervened lawsuit brought by a relator.

Crowell & Moring is pleased to announce the launch of our Government Contracts Breakfast Series. All of the sessions will be held in Northern Virginia and focus on issues most important to government contractors. Our January session is described below. When performing government contracts, contractors frequently experience performance challenges such as delays; increased performance costs attributable to government action; costs resulting from government-initiated contract termination; and costs of remediating certain environmental pollution and toxic tort litigation. Each of these add time or additional expense for which the government may have a legal obligation to pay. Join us as we discuss the process of filings claims and REAs, including a discussion of formal and informal dispute resolution under government contracts. We will provide a CLE certificate of attendance and other materials to use in seeking continuing education credits. Registration begins at 8:00 am.

Crowell & Moring is pleased to announce the launch of our Government Contracts Breakfast Series. All of the sessions will be held in Northern Virginia and focus on issues most important to government contractors. Our second session is described below.

Government spending cuts will mean cuts to your bottom line.  In this time of budget sequestration and programmatic uncertainties, it is more important than ever for contractors to quickly recognize and effectively respond to potentially costly contract changes. Join us for a practical discussion as we guide participants through several types of constructive changes, addressing the critical role for front-line personnel in recognizing changes, methods to ensure notice requirements are met, maintenance of proper documentation, and the use of cross-disciplinary teams to ensure impacts are evaluated correctly.  We will examine the preparation of contract claims and requests for equitable adjustment, as well as techniques to preserve agency relationships while still protecting the company from unjust losses.

Small business regulations and requirements can be perilous for small businesses and large companies alike. From certifications related to small business subcontracting goals to eligibility for set-aside procurements, and much more, civil and even criminal liability looms for those who intentionally break the rules, with the False Claims Act providing treble damages that in some cases can be measured as the entire value of a contract. In this webinar we will discuss enforcement trends and pitfalls for both small and large businesses to guard against.

Please Join Crowell & Moring for a Webinar on COVID-19 and the False Claims Act: What to Expect and How to Defend Investigations, Audits, and Qui Tam Actions in a Post-Pandemic World.

Crowell & Moring is offering a two-part webinar series for government contractors on past and anticipated developments in procurement statues and regulations concerning small businesses.  

In this episode, Jason Crawford, Brian Tully McLaughlin, and Agustin Orozco explore the issues before the Supreme Court in two consolidated cases involving the False Claims Act. The hosts discuss the April 18 oral argument in Schutte/Proctor where the question before the Justices is whether a defendant’s subjective knowledge about whether its conduct was legal is relevant to whether it “knowingly” submitted false claims.

In this episode, hosts Michael Shaheen and Tully McLaughlin cover part one of a discussion about the Department of Justice’s authority to dismiss qui tam complaints brought by relators.  The podcast: (1) outlines the government’s authority under the statute and the caselaw; (2) discusses how the Department of Justice wields that authority; and (3) describes the false controversy between the Department and Senator Grassley on the scope of that authority. "Let's Talk FCA" is Crowell & Moring’s podcast covering the latest developments with the False Claims Act.

In this episode, host Mana Lombardo and partner Tully McLaughlin discuss the top FCA decisions and developments of 2020 and look ahead to what’s in store in 2021 and beyond. "Let's Talk FCA" is Crowell & Moring’s podcast covering the latest developments with the False Claims Act.