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The U.S. Supreme Court unanimously ruled that reimbursement requests filed under the FCC’s telecommunications services subsidy program for low-income schools and libraries are subject to government fraud claims. This decision arose from the case Wisconsin Bell v. Heath (23-1127), where the Court rejected Wisconsin Bell's attempt to evade a whistleblower suit alleging it submitted false claims for reimbursement. The ruling clarifies that telecom companies participating in the federal E-Rate program, which supports connectivity for schools and libraries, can be sued under the False Claims Act for excess payouts, as these funds originate from the U.S. Treasury. Justices Kavanaugh and Thomas indicated concerns regarding the constitutionality of the private-filing provisions of the False Claims Act.
BREAKING: Justices ruled unanimously that telecoms participating in the federal E-Rate program supporting school and library connectivity can be sued for excess payouts under the False Claims Act because funds are provided through the U.S. Treasury. https://t.co/h2xn9clr8J
The US Supreme Court ruled against Wisconsin Bell in its bid to avoid a whistleblower suit that accuses it of submitting false claims for reimbursement to a government program that subsidizes the internet for schools and libraries. https://t.co/VaHqTHBq2s
JUST IN: #SCOTUS takes expansive view of False Claims Act, ruling that requests for FCC ERate funding can give rise to FCA Suit. Unanimous BUT Kavanaugh and Thomas ring bell that the private-filing (qui tam) provisions of the law may be unconstitutional https://t.co/E7DKDYNKx8 https://t.co/lUr0VW0LfN
