On May 7, 2019, the Department of Justice (“DOJ”) released new guidance for trial attorneys in the DOJ’s civil division regarding how entities under False Claims Act investigation can receive credit for cooperation.  The release of this new guidance follows public comments delivered in March by Michael Granston, director of DOJ’s civil fraud section, noting that DOJ was considering issuing additional guidance on cooperation credit related to False Claims Act matters.

The policy explains that cooperation credit in False Claims Act cases may be earned by “voluntarily disclosing misconduct unknown to the government, cooperating in an ongoing investigation, or undertaking remedial measures in response to a violation.” In its press release, DOJ noted that cooperation credit will involve a reduction in the damages multiplier and civil penalties and DOJ may publicly acknowledge the company’s cooperation.

The authors are in the process of preparing a Client Alert addressing potential implications of this new guidance on health care entities. The Client Alert will be ready in the coming days and will be posted on the EBG website, linked to this blog post, and distributed through EBG’s email lists.

DOJ Press Release

Link to the New Guidance

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