Bass, Berry & Sims attorneys Todd Overman and Scott Gallisdorfer authored an article for Industry Today that provided information about how the False Claims Act (FCA) is being used against manufacturers accused of violating domestic preference and tariff laws.
The article explained the risks under the FCA of any person who knowingly submits, or causes to be submitted, false claims to the government. The attorneys noted that the person would be liable for three times the government’s damages plus a per-claim penalty that is linked to inflation.
Scott and Todd elaborated on how manufacturers should anticipate routine transactions being scrutinized for compliance through the Infrastructure Investment and Jobs Act (IIJA). The attorneys warned that the government is willing to bring action against small companies and routine contracts and emphasized how manufacturers are especially vulnerable to FCA risks. The authors then provided recommendations on how they should take proactive steps to mitigate their risk, especially investing in compliance programs.
“Companies that prepare now will be best positioned to compete for federal contracts without facing the risk of FCA liability,” said Scott and Todd.
The full article, “Manufacturers See Rising FCA Risk With U.S. First Laws,” was published October 17 by Industry Today and is available online.