U.S. ex rel. Schutte v. SuperValu Inc. (False Claims Act)

Send us Fan MailSupreme Court's decision is here.  The False Claims Act allows for private citizens to bring a cause of action on behalf of the United Sates, against a person who "knowingly" submits a "false claim" to a federal program. The defendant can meet the knowledge requirement by, 1.) actual knowledge that the reported prices were not "usual and customary," 2.) being aware of a substantial risk that the retail prices were not usual and customary, or 3.) awareness of a substantial and unjustifiable risk but the defendant decided to submit the claim regardless. The Court adopted a subjective standard, even if an objective test would not meet the same requirement. Support the show