Category Archives: Supreme Court

Supreme Court Rejects “Objectively Reasonable” Defense to False Claims Act Liability

Key Takeaways:

  • On June 1, 2023, in United States ex rel. Schutte v. SuperValu Inc., the U.S. Supreme Court unanimously held that defendants cannot avoid liability under the False Claims Act (FCA) by demonstrating that their conduct was consistent with an “objectively reasonable” interpretation of an ambiguous legal requirement.
  • The Court’s decision clarifies that FCA liability turns on the subjective standard of whether a defendant,…
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Supreme Court Preview: The Supreme Court Poised to Address Key Federal Wire Fraud Issue

In the 2022-2023 term, the Supreme Court will address the definition of “property” under the federal wire fraud statute, which prohibits a person from “obtaining money or property by means of false pretenses.” 18 U.S.C. § 1343. The definition of “property” for the purposes of this statute has been much debated—need “property” be economic in nature?  Must it be tangible?  Can one’s admission to a university constitute “property”? … More

CFPB’s Structure Found Unconstitutional, But Agency Will Survive

The Supreme Court in Seila Law LLC v. Consumer Financial Protection Bureau held that the structure of the Consumer Financial Protection Bureau (“CFPB”) violated the separation of powers, but stopped short of finding the entire agency unconstitutional and instead held the CFPB could live on with a director who was removable at will by the President.

The Court reasoned that the CFPB’s “unique structure” was unconstitutional because the agency was “vested with significant executive power” but was led by a single director who was,… More

White Collar Year in Preview: False Claims Act Trends in 2020

Editors’ Note: This is the fourth in our start-of-year series examining important trends in white collar law and investigations in the coming year. Our previous entry discussed  anti-corruption trends in 2020. Up next: a look at State Attorney General trendsLook for additional posts throughout the month of January.

More than halfway into the Donald Trump administration,… More

Supreme Court to Decide Constitutionality of the CFPB

The Supreme Court has granted certiorari to hear a challenge to the constitutionality of the Consumer Financial Protection Bureau (CFPB).  While the CFPB won in the Ninth Circuit, the agency has since changed its mind and now agrees that its structure, which makes the single director of an independent agency removable only for cause, is unconstitutional, and also asked the Court to grant certiorari. … More