U.S. Supreme Court Justices Consider Relevance of Subjective Knowledge Under False Claims Act
Highlights
U.S. Supreme Court is considering whether a defendant’s subjective beliefs about the meaning of a statute or regulation are relevant under the False Claims Act if the defendant’s claim was supported by an objectively reasonable interpretation
During oral argument, the justices questioned whether subjective intent should always be irrelevant to the knowledge standard of the False Claims Act
The justices’ questions focused on the scope of the decision required in this case
On April 17, 2023, the U.S. Supreme Court heard oral argument in the consolidated cases of United States ex rel. Schutte v. SuperValu Inc. and United States ex rel. Proctor v. Safeway, Inc. The dispute concerns the relevance of an actor’s subjective knowledge under the False Claims Act (FCA) when the actor adopts an incorrect but nevertheless “objectively reasonable” interpretation of a statute or regulation.
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