March 20, 2018 Top Story

Seventh Circuit Reverses Itself, Resolves Circuit Split

Proximate cause, not "but-for" test, is required for False Claims Act recovery

By Katerina E. Milenkovski

For more than two decades, the U.S. Court of Appeals for the Seventh Circuit was the sole circuit court to require the government or relators to demonstrate something less than proximate causation to prevail in False Claims Act (FCA) cases.

The owner of a mortgage company falsely certified to HUD that he did not have criminal charges despite his indictments for fraud

The owner of a mortgage company falsely certified to HUD that he did not have criminal charges despite his indictments for fraud

iStockphoto by Getty Images

With its recent ruling in United States v. Luce, however, the Seventh Circuit has overruled its prior precedent and now falls into line with other circuit courts that have weighed in on this issue.

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