Companies that have business dealings with the U.S. government need no introduction to the False Claims Act. Broadly speaking, the FCA prohibits making false claims to obtain payment from the federal government. Virtually no industry is immune from FCA claims. The FCA implicates all government contracts, including defense contracts, construction contracts, and various government programs such as federally insured loans and mortgages, education grants and Medicare.

The U.S. Department of Justice has recovered billions of dollars in FCA lawsuits. In October 2014, a federal jury handed down a $175 million verdict against Trinity Industries, which was accused of making false claims in connection with the installation of highway guardrails. With the potential for trebled damages, attorney fees and penalties under the FCA, that figure could increase.

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