Employment Law Group

The Rounds | Ep. 29 | FCA News with Tejinder Singh

The episode of "The Rounds" examines recent appellate decisions shaping fee awards and claim viability under the False Claims Act, plus a high‑profile IBM settlement. In the Fifth Circuit, relator Conjurs lost both share and attorney‑fee entitlement in US X‑Rail v. KBR, as the court read §3730(d)(1) to require a share of proceeds before fees. The Ninth Circuit reversed a district court’s 1.75 × lodestar multiplier in US X‑Rail v. Academy Mortgage, deeming the recovery not “rare and exceptional.” The Sixth Circuit barred a relator in US X‑Anderson v. St. Elizabeth for alleged fraud already raised in a prior, dismissed action, and in US X‑Lin v. Detroit held that forward‑looking promises do not constitute false certifications. Tejinder Singh highlighted the courts’ “generalist” approach, questioning the policy impact of denying fees and the ambiguity of “exceptional” standards. He noted the IBM settlement, described as the DOJ’s first civil‑rights fraud case, involved DEI‑linked bonus structures but lacked a clear contract nexus. These rulings tighten fee recovery prospects for whistleblowers, potentially discouraging FCA litigation, while the IBM case signals DOJ’s willingness to pursue civil‑rights‑based FCA claims, prompting contractors to reassess compliance and disclosure strategies.