On November 4, the U.S. Supreme Court heard oral arguments in Wisconsin Bell Inc. v. U.S. ex rel. Heath, a False Claims Act whistleblower case that could limit the scope of the law and restrict the ability of the government and whistleblowers to crack down on fraud in industry-funded federal programs that are mandated by Congress.
The case concerns a qui tam whistleblower suit filed against Wisconsin Bell alleging that the telecommunications company defrauded the Federal Communications Commission’s E-rate program, a Congressional-mandated program to help certain schools and libraries afford internet and telecommunications.
Wisconsin Bell has argued that there is no FCA liability in the case because the E-rate program is administered by a private nonprofit organization and is funded by government-mandated payments made by private telecommunications carriers into the Universal Service Fund (USF).
According to leading whistleblower attorney David Colapinto, the Justices’ questions during oral arguments suggests that they are poised to side with the whistleblower and rule against Wisconsin Bell.
“Focusing on the definition of what is a ‘claim’ in the False Claims Act, the Justices seemed satisfied that the federal government provided at least a portion of funds in the USF that the whistleblower alleges was defrauded by Wisconsin Bell,” Colapinto explains in an analysis of the case.
“A ruling by the Court in favor of the whistleblower, even a narrow ruling which avoids larger questions about industry funded federal programs, is a win for accountability and American taxpayers,” Colapinto continues. “The False Claims Act, particularly its qui tam provisions that empower whistleblowers, is a vital tool in fighting fraud in government programs and contracts.Since the law was modernized in 1986, it has resulted in the recovery of $75 billion in taxpayer dollars from fraudsters, with over $50 billion of these recoveries stemming from qui tam whistleblower lawsuits.”
Further Reading:
Supreme Court Seems Poised to Support Whistleblower in E-Rate False Claims Act Case