If the past is any guide, the government funds being used to help businesses during this downturn will surely produce False Claims Act investigations and litigation, according to a commentary in the National Law Journal. In the five years after 2009, when Congress passed stimulus bills to respond to the financial crisis, the government and private whistleblowers filed nearly 4,000 FCA cases and recovered almost $23 billion. On March 27, President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security Act, which provides $2 trillion in federal funds to fight the ongoing health and economic crisis caused by COVID-19. The CARES Act is the largest economic stimulus package in U.S. history, more than twice as large as the measures passed in 2009. It provides $349 billion in loans for small businesses, $130 billion in relief for hospitals and medical suppliers, and $500 billion in assistance to other businesses, states, and municipalities. Many companies desperately need the funds the CARES Act offers, but they should carefully ensure that they meet the eligibility requirements, according to the commentary. Any person or business that recklessly submits a material false statement in connection with a claim for funds could wind up as the target of an FCA investigation.
