DOJ releases formal guidance for litigators in False Claims Act cases

The Department of Justice this week issued on how it awards credit to defendants who cooperate during a False Claims Act investigation. Under the policy, defendants may earn credit by voluntarily disclosing misconduct unknown to the government, cooperating in an ongoing investigation or undertaking remedial measures in response to a violation. The credit will usually take the form of a reduction in the damages multiplier and civil penalties, the agency said. AHA outside counsel Jonathan Diesenhaus, a partner at Hogan Lovells, said, 鈥淭he release of guidance makes it clear that self-disclosure and cooperation should produce real benefit to hospitals settling False Claims Act investigations, including lower settlement amounts and public acknowledgement of good compliance practices; unfortunately, unlike similar guidance issued by other federal agencies, these guidelines don鈥檛 provide a clear recipe or formula for how or when DOJ will confer those benefits.鈥