Attorney General Tong Statement on U.S. Supreme Court Decision Affirming Robust, Fair Reading of False Claims Act

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06/01/2023

Attorney General Tong Statement on U.S. Supreme Court Decision Affirming Robust, Fair Reading of False Claims Act

(Hartford, CT) – Attorney General William Tong praised a unanimous decision by the U.S. Supreme Court that affirmed a robust and fair reading of the False Claims Act (FCA).

Earlier this year, Attorney General Tong led a bi-partisan effort in filing a brief on behalf of 33 states arguing that the Supreme Court should interpret “knowingly” under the FCA to allow evidence of what a provider subjectively knew based on relevant guidance issued by state Medicaid agencies.

In the consolidated cases of United States ex rel. Tracy Schutte, et al v. SuperValu, Inc. (No. 21-1326) and United States ex rel. Thomas Proctor v. Safeway, Inc. (No. 22-111), the Supreme Court ruled that a retail pharmacy chain that subjectively believed that their discounted drug prices were the “usual and customary” prices, but nevertheless took steps to prevent Medicaid and Medicare from finding out, could be held liable under the FCA for knowingly submitting false claims for payment to the government.

“The U.S. Supreme Court today affirmed a robust and fair reading of the False Claims Act, vacating a federal appellate court ruling that misconstrued the definition of ‘knowing’ under the Act and jeopardized the integrity of state Medicaid operations. A strong interpretation of the False Claims Act is vital for the protection of taxpayer dollars, and I am grateful for this decision today on behalf of Connecticut taxpayers and Medicaid beneficiaries,” Attorney General Tong said.

Attorney General Tong was assisted in this matter by Connecticut Solicitor General Joshua Perry, Deputy Associate Attorney General Gregory O’Connell, Assistant Attorneys General Eric Babbs and Karla Turekian, and Administrative Assistant Lynn Strobel.

A copy of the decision can be found here.

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