A Constitutional Perspective on False Claims Act Penalties: District Court Finds That Penalties Conflict With Constitution’s Excessive Fine Clause
By EsqSocial Corporation 25/04/25
In a potential watershed decision issued on February 26, 2025, the United States District Court for the Northern District of Texas ruled, in U.S. ex rel. Taylor v. Healthcare Associates of Texas, that the civil penalties under the False Claims Act (“FCA”) are subject to the U.S. Constitution’s Eighth Amendment’s prohibition against excessive fines. The court determined that the statutory penalties, when applied to the facts of the case, were unconstitutionally excessive and reduced them...
By: Arnall Golden Gregory LLP