On March 21, 2011, the Office of Inspector General of the Department of Health and Human Services sent a letter to California Attorney General Kamala Harris to inform her that the California False Claims Act no longer met federal guidelines for state false claims laws. These guidelines establish eligibility for economic incentives for actions brought under state false claims laws. Whether it is in the state of California’s best interest to amend the CFCA remains an open question.
Background
The federal False Claim Act is a critical and increasingly relevant tool in the federal government’s anti-fraud arsenal. The statute was initially passed during the Civil War to combat the provision of defective goods and services to the Union Army. After the war, the FCA went largely unused until 1986, when Congress adopted significant amendments that both strengthened the law and expanded its reach.
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