Bradley Nash Quoted in Law360 on Supreme Court’s Review of FCA Lawsuits
The U.S. Supreme Court recently agreed to review cases under the False Claims Act, accusing major retailers Supervalu and Safeway of overcharging Medicare and Medicaid for generic drugs. Bradley Nash spoke with Law360 about the potential insurance implications should the Supreme Court uphold the Seventh Circuit’s ruling that a defendant’s subjective intent is not determinative of FCA liability if there are “objectively reasonable” explanations for the defendant’s conduct. The question therefore arises whether an insurer could deny coverage based on the insured’s subjective intent to violate the law, notwithstanding a finding that the insured is not liable under the FCA. Brad notes, “should such a case come up, it would likely be decided based on the principle of policy interpretation that exclusions must be construed narrowly, meaning that the final adjudication of no FCA liability should ultimately be the deciding factor.” Read the full article here.