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Improved California False Claims Act Goes Into Effect

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SOURCE: Nolan & Auerbach, P.A.

Recently, Governor Jerry Brown signed into law important amendments to the California False Claims Act. “By closing liability loopholes, California has moved to protect all State funds,” explained former federal prosecutor and Nolan Auerbach partner Matthew Pavone. “Our clients are now armed with a more effective fraud-fighting weapon.”

SAN FRANCISCO, CA (PRWEB) January 29, 2013

Recently, Governor Jerry Brown signed into law important amendments to the California False Claims Act (See California Assembly Bill 2492; Cal. Gov't Code §§ 12650-56). Effective January 1, 2013, these amendments modernize this fraud-fighting law, which has empowered private citizens to recover California’s stolen dollars since 1987. “By closing liability loopholes, California has moved to protect all State funds,” explained former federal prosecutor and Nolan Auerbach partner Matthew Pavone. “Our clients are now armed with a more effective fraud-fighting weapon.”

Many of these amendments mirror recent changes to the federal False Claims Act. Among other things, these landmark amendments restore key liability provisions, strengthen anti-retaliation protections for whistleblowers, and change the cost-benefit analysis for dishonest entities who seek to steal California’s limited funds.

“By closing liability loopholes, California has moved to protect all State funds,” explained former federal prosecutor and Nolan Auerbach partner Matthew Pavone. “Our clients are now armed with a more effective fraud-fighting weapon.”

Perhaps most importantly, the amendments explicitly attach False Claims Act liability to any entity that wrongfully retains an overpayment of government funds. This is particularly important in the fight against Medi-Cal fraud, where dishonest providers regularly pocket overpayments of State healthcare dollars.

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