Almost a Year Since Connecticut Expanded its False Claims Act

It has almost been a year since Governor Ned Lamont signed into law the bill expanding Connecticut’s False claims Act. The bill, “An Act Concerning Liability for False and Fraudulent Claims,” expanded the existing Connecticut False Claims act to cover nonhealthcare related fraud.

Before the signing of the bill, Connecticut’s False Claims Act only applied to false or fraudulent claims for payment or approval under state-administered health or human services programs. The new law which came into effect last June, removes the language which specifies these programs and expands the law to cover any false claim filed under state programs.

Connecticut False Claims Act

The Connecticut False Claims Act is modeled after the Federal False Claims Act and prohibits individuals and entities from knowingly presenting false claims for money or property to any officer, employee, or agent of the state. Violators face significant penalties, including treble damages and a penalty of $5,500 to $11,000 per false claim. Private citizens may also bring actions on behalf of the state and receive a share of any settlement or judgment.

The Expanded Connecticut False Claims Act

Under the expanded False Claims Act, public contractors who make good faith claims for payment could face significant damages and penalties if they fail to prove their claim, as well as substantial costs to defend against alleged violations. Although the Act includes a provision prohibiting the state from bringing a counterclaim under the False Claims Act against a claimant in litigation or arbitration, it is critical for contractors to understand the law and its potential implications.

For more information on the Connecticut False Claims Act, please contact our experienced attorneys at Garcia & Milas.

By: Jaime Paoletti, Garcia & Milas, P.C.

This publication is for general information purposes only and is not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.

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