The U.S. Supreme Court ruled unanimously that a whistleblower’s fraud lawsuit against a Wisconsin telecommunications company for allegedly overcharging schools for internet services may move forward.
Justice Elena Kagan wrote the court’s 9–0 opinion in Wisconsin Bell Inc. v. United States ex rel. Heath, which was issued on Feb. 21.
Wisconsin Bell argued the lawsuit could not proceed because no government funds were involved, but the justices disagreed, holding that some government funds were involved, and that this meant the whistleblower may proceed with his lawsuit in the lower courts.
The lawsuit concerned the application of the federal False Claims Act (FCA). Sometimes called the Lincoln Law, the FCA was enacted in 1863 to address defense contractor fraud during the Civil War. Under the statute, anyone who knowingly files false claims with the government is liable for triple damages plus a $2,000 penalty for each false claim….