Is the potential defendant’s financial situation important in deciding whether a case is brought?
The ability of the defendant to pay damages is an important consideration. False Claims Act cases can be long and costly. Most defendants have substantial funds to fight a case. A defendant must be able to pay substantial damages for the fraud committed if a case is ultimately to be financially worthwhile. If a company is bankrupt or nearly so, the Government, the relator, and the lawyers may recover nothing for their efforts, no matter how horrible the wrongdoing.
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- Is the potential defendant’s financial situation important in deciding whether a case is brought?
