DOJ’s Civil Rights Fraud Initiative Raises False Claims Act Risks for Healthcare and Life Sciences Companies

In a Reuters article, Sidley partners Jaime Jones, Kristin Graham Koehler and Boyd Greene examine how the U.S. Department of Justice’s Civil Rights Fraud Initiative could create new False Claims Act (FCA) exposure for healthcare and life sciences companies that receive federal funding or contract with the federal government. The initiative seeks to use the FCA to pursue organizations that allegedly violate federal civil rights laws while certifying compliance with contractual, grant or funding requirements.

The authors analyze the practical implications for healthcare and life sciences companies, including increased scrutiny of diversity, equity and inclusion programs, employment practices and federal contracting compliance. They also outline key considerations for companies evaluating FCA risk, including reviews of employment policies, federal contract certifications, compliance controls, internal reporting mechanisms and voluntary self-disclosure strategies in light of evolving enforcement priorities.

Kyle Fiet, a partner in Sidley's Global Arbitration, Trade and Advocacy practice, contributed to this article.